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NORTH CAROLINA
>LUME 11 • ISSUE 19 • Pages
January 2, 1997
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HISISS1
Executive Order,,w
InAddstidfi I E
Administration, Department of
1 Adiniftistfativ§I^rm^,|OfBce of
Community Colleges
Cultural Resources
Environment, Health, and Natural Reso^cejN^ ///
Human Resources
ursing, Board of
efrigeration Examiners, Board of
dH^ I i&l \y 2§
Social Work, Certificatipnl
List of Rules Codified
Rules Review Commissio
Contested Case Decisions
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JAN 6 1997
KATHttW*! R. EVERETT
LAW LIS*AJt?
PUBLISHED BY
Tfte Office ofAdministrative Hearings
Rules Division
PO Drawer 27447
Raleigh, NC 27611-7447
Telephone (919) 733-2678
Fax (919) 733-3462
This publication is printed on permanent, acid-free paper in compliance with G.S. 125-11.13
NORTH CAROLINA IN THIS ISSUE
I. EXECUTIVE ORDERS
Executive Orders 1406
n. IN ADDITION 1407
Volume 1 1 , Issue 1 9
Pages 1 406 - 1532
January 2, 1 997
This issue contains documents officially filed
through December 6, 1996.
Office of Adrninistrative Hearings
Rules Division
424 North Blount Street (27601)
PO Drawer 27447
Raleigh, NC 27611-7447
(919) 733-2678
FAX (919) 733-3462
m. RULE-MAKING AGENDA
Environment, Health, and Natural Resources .... 1408 - 1412
Coastal Resources Commission
Environmental Management Commission
Health Services, Commission for
Water Pollution Control System Operators Certification Comm.
IV. RULE-MAKING PROCEEDINGS
Administrative Hearings, Office of
Rules Division 1413
Transportation
Motor Vehicles, Division of 1413
V. PROPOSED RULES
Administration, Department of
State Building Commission 1414 - 1416
Environment, Health, and Natural Resources
Wildlife Commission 1427 - 1428
Insurance
Engineering and Building Codes Division 1416 - 1425
Property and Casualty Division 1426 - 1427
Licensing Board
Nursing, Board of 1428 - 1429
State Personnel
State Personnel Commission 1429 - 1435
VI. TEMPORARY RULES
Cultural Resources
USS NC Battleship Commission 1436
Environment, Health, and Natural Resources
Departmental Rules 1439 - 1442
Water Pollution Control System Operators
Certification Commission . 1442 - 1448
Human Resources
Medical Assistance, Division of 1436 - 1439
VH. APPROVED RULES 1449 - 1512
Community Colleges
Environment, Health, and Natural Resources
Human Resources
Occupational Licensing Boards
Refrigeration Examiners, Board of
Social Work, Certification Board for
Revenue
Julian Mann IU, Director
James R. Scarcella Sr. , Deputy Director
Molly Masich, Director of APA Services
Ruby Creech, Publications Coordinator
Teresa Kilpatrick, Editorial Assistant
Jean Shirley, Editorial Assistant
Linda Richardson, Editorial Assistant
Vm. LIST OF RULES CODIFIED 1513
DC RULES REVIEW COMMISSION 1514 - 1517
X. CONTESTED CASE DECISIONS
Index to ALJ Decisions 1518 - 1529
Text of Selected Decisions
96 EHR 0692 1530 - 1531
XI. CUMULATIVE INDEX 1-38
Digitized by the Internet Archive
in 2011 with funding from
University of North Carolina at Chapel Hill
http://www.archive.org/details/northcarolinareg1119nort
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EXECUTIVE ORDERS
EXECUTIVE ORDER NO. 105
AMENDING EXECUTIVE ORDERS NO. 99, 102 AND 103
CONCERNING EMERGENCY RELIEF FOR DAMAGE
CAUSED BY HURRICANE FRAN
WHEREAS, Executive Order No. 99 was issued to provide emergency relief for damage caused by Hurricane Fran by
waiving certain size and weight restrictions for certain vehicles; and
WHEREAS, Executive Order No. 99 has been amended by Executive Order No. 102 and Executive Order No. 103; and
WHEREAS, in order to comply with federal law, there is a need to amend Executive Order No. 99 again.
NOW, THEREFORE, pursuant to the authority vested in me as Governor by the Constitution and laws of this State, TT IS
ORDERED:
Executive Order No. 99, as amended, is not applicable to the Interstate Highway System within North Carolina. All other
provisions of Executive Order No. 99, as amended, shall remain in effect.
Done in Raleigh, North Carolina, this 2nd day of December, 1996.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1406
IN ADDITION
This Section contains public notices that are required to be published in the Register or have been approved by the
Codifier of Rulesfor publication.
G.S. 150B-21.17 requires the Codifier of Rules to publish certain information determined to be in the public interest.
Pursuant to the specific written request of the Petree Stockton, law firm of Raleigh, North Carolina, the document printed
below is published under this authority, without comment. Publication of public information under this section should not
be construed to have any legal effect upon any pending litigation or rulemaking procedure.
"Pursuant to N.C.G.S. 150B-21. 1(b), I hereby find that the Agency's written statement of its findings of need for the
temporary rules proposed as 10 N.C.A.C. 3R .3030(8)(a),(b), (c) and (d) does not meet the criteria set forth in N.C.G.S.
150B-2 1.1(a), in that the Agency has not shown that adherence to the notice and hearing requirements of the Administrative
Procedure Act would be contrary to the public interest. Therefore, I do not approve of the adoption of proposed 10 N.C.A.C.
3R .3030(8)(a),(b), (c) and (d) as temporary rules. I do approve the remaining temporary rules submitted by the Agency as
10 N.C.A.C. 3R .3001, .3010, .3020. .3030(l)-(7) and (8)(e)-(h), .3032, .3040 and .3050."
s/Beecher R. Gray
12/29/95
Attachment A
1407 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
An agency may choose to publish a rule-making agenda which serves as a notice of rule-making proceedings if the agenda
includes the information required in a notice of rule-making proceedings. The agency must accept comments on the
agenda for at least 60 daysfrom the publication date. Statutory reference: G.S. 150B-21.2.
TITLE 15A - DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES
This agenda will serve as the notice of rule-making proceedingsfor thefollowing rule-making bodiesfrom January 2, 1997
through March 3, 1997:
Environmental Management Commission - to rules codified in 15A NCAC 2;
Coastal Resources Commission - to rules codified in 15A NCAC 7;
Water Pollution Control System Operators Certification Commission - to rules codified in 15A NCAC 8F; and
Commission for Health Services - to rules codified in 15A NCAC ISA and 26.
DEHNR Regulatory Agenda Index - December 6, 1996
AIR OUALITY
APA# SUBJECT
E2128 Annual Emission Reporting
E2129 Open Burning
E2130 Volatile Organic Compound Emissions
E2131 Transportation Conformity
RULE CITATION &
15A NCAC 2Q .0207
15A NCAC 2D . 1902, . 1903
15A NCAC 2D .0518, .0950, .0902, .0909, .0917 - .0924,
.0934, .0948, .0949, .0951 and 2Q .0102
15ANCAC2D .1500
COASTAL MANAGEMENT
AEA# SUBJECT
E2134 Ocean Mining
RULE CITATION #
15A NCAC 7M .1200; 7H .0106; 7H .0208(b)(ll)
ENVIRONMENTAL HEALTH/ONSITE WASTEWATER
APA # SUBJECT
H653
1
Law and Rules for Sewage Treatment
and Disposal Systems Permits
RULE CITATION #
15A NCAC 18A .1937, .1938, .1958, .1961
(To be filed as temporary rules)
HEALTH AND ENVIRONMENTAL STATISTICS
APA # SUBJECT
H6532 Birth Defects Monitoring Program
RULE CITATION #
15A NCAC 26C .0001- .0007
WATER OUALITY
APA #
E2120
SUBJECT
Certification of Operators of Animal
Waste Management Systems
RULE CITATION &
15A NCAC 8F .0101, .0102, .0201, .0202, .0203, .0301,
.0401-.0407, .0501 - .0507 (Filed as temporary rules)
APA #: E2120
SUBJECT: Certification of Operators of Animal Waste Management Systems
RULE CITATION #: 15A NCAC 8F .0101, .0102, .0201, .0202, .0203, .0301, .0401-.0407, .0501 - .0507
STATUTORY AUTHORITY: G.S. 90A-35; 90A-37; 90A-38; 90A-39; 90A-41; 90A-43; 90A-44; 90A-47; 143B-300;
150B-3; 150B-23; 150B-38; 150B-52
DIVISION/SECTION: WATER QUALITY
DIVISION CONTACT: Ron Ferrell
DIVISION CONTACT TEL#: (919)733-0026
DATE INITIATED: 11/6/96
DURATION OF RULE: Temporary 1/1/97
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
11:19 NORTH CAROLINA REGISTER January 2, 1997 1408
RULE-MAKING AGENDA
The purpose of this rulemaking is to establish the certification procedures and requirements for operators of animal
waste management systems as required by NCGS 90A-47. The intent of this certification is to reduce nonpoint source
pollution that may result from the land application of animal waste that is generated by animal operations as defined
at NCGS 143-215. 10B. The certification program is designed to protect the public health and to conserve and protect
the quality of the State's agricultural land for the production of food and other agricultural products, and to require
the examination of animal waste management system operators and certification of their competency to operate or
supervise the operation of those systems.
SCOPE/NATURE/SUMMARY:
The proposed rules set forth the requirements and procedures for the training and certification of persons who perform
the land application of animal waste that is generated by animal operations as required by NCGS 90A-47. This
certification program is administered by the Water Pollution Control System Operators Certification Commission
(Commission). The purpose of these rules is to reduce nonpoint source pollution in order to protect the public health
and to conserve the quality of the state's water resources. These rules are also intended to encourage the development
and improvement of the state's agricultural land for the production of food and other agricultural products.
The proposed rules apply to all animal operations as defined at NCGS 143-215. 10B. The owners of these facilities
are required to designate and maintain a certified Operator in Charge by January 1, 1997 who is responsible for the
application of animal waste to the land. The Operator in Charge of the facility is responsible for ensuring that the
application of animal waste to the land is performed in accordance with the animal waste management plan for the
facility. As stipulated by the enabling legislation, to become certified an individual must attend ten (10) hours of
training approved by the Commission and demonstrate competence in the operation of animal waste management
systems by passing an examination. The Commission may assess a civil penalty of up to $1,000 for failure to comply
with the requirements of these rules.
APA #: E2128
SUBJECT: Annual Emission Reporting
RULE CITATION #: 15A NCAC 2Q .0207
STATUTORY AUTHORITY: G.S. 143-215. 3(a)(1), (la), (lb), (Id); 143-215.65; 143-215. 106A; 143-215.107; 143B-282;
150B-21.6
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent 7/1/98
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To add perchloroethylene to the list of compounds in 15A NCAC 2Q .0207 for annual reporting of emissions is
required.
SCOPE/NATURE/SUMMARY:
Rule 15A NCAC 2Q .0207, Annual Emissions Reporting, requires the owners or operators of Title V facilities to
report each year the actual emissions of listed compounds that occurred during the previous year. One of the listed
compounds is volatile organic compounds (VOC). Until recently, perchloroethylene was included in the emissions
of VOC. However, the definition of VOC has been amended to exclude perchloroethylene. Because it is a hazardous
air pollutant, the emissions of perchloroethylene still needs to be reported annually. Therefore, 15A NCAC 2Q .0207
needs to be amended to add perchloroethylene to the list of compounds that need to be reported annually.
APA #: E2129
SUBJECT: Open Burning
RULE CITATION #: 15A NCAC 2D .1902, .1903
STATUTORY AUTHORITY: G.S. 143-212; 143-213; 143-215. 3(a)(1); 143-215. 107(a)(5)
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent 7/1/98
TYPE OF RULE:
1409 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To change the name of the Asbestos Hazardous Management Branch to Health Hazard Control Branch in the open
burning rules.
SCOPE/NATURE/SUMMARY:
The Asbestos Hazardous Management Branch has changed its name to Health Hazard Control Branch. Rules 15A
NCAC 2D . 1902, Definitions, and . 1903, Permissible Open Burning Without a Permit, need to be amended to make
this name change.
APA #: E2130
SUBJECT: Volatile Organic Compound Emissions
RULE CITATION #: 15A NCAC 2D .0518, .0902, .0909, .0917 - .0924, .0934, .0948, .0949, .0950, .0951 and 2Q .0102
STATUTORY AUTHORITY: G.S. 143-215. 3(a)(1); 143-215. 107(a)(4); 143-215. 107(a)(5); 143-215.108
DIVISION/SECTION: ATR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To replace 15A NCAC 2D .0518, an archaic rule, with a more common sense and reasonable rule.
SCOPE/NATURE/SUMMARY:
Paragraph (d) of Rule 15A NCAC 2D .0518, Miscellaneous Volatile Organic Compound Emissions, is an antiquated
concept. Whether or not emissions of volatile organic compounds (VOC) are restricted under this rule depends on the
composition of the mixture. If a solvent mix contains compounds defined by chemical structure as being
photochemically reactive above a specified percentage, then the emissions of these compounds are restricted. However,
if a solvent contains these same photochemically reactive compounds below the specified percentage, then the emissions
of these compounds are not restricted. Further, the concept that photochemically reactivity of a VOC is solely
determined by its chemical structure is no longer accepted.
Presently primary consideration is being given to replacing this rule with a work-practice type standard. For example,
typical work practices could include storing all waste material containing volatile organic compounds in closed
containers, cleaning up spills immediately, storing wipe rags in closed containers when not in use, not cleaning
absorbent materials, and covering all containers holding materials containing volatile organic compounds when not in
use. Special provisions may be added for degreasing or cleaning operations, such as, flushing parts in the freeboard
area, reducing the pooling of solvent on and in the parts, tilting or rotating parts to drain as much solvent as possible
and allow sufficient time for drying, not fill cleaning machines above the fill line, and not agitate solvent to the point
of causing splashing. The current rule covers only the use of solvent. The replacement probably would cover not only
the use of VOC as solvent, but also as reactants or product constituents.
Other control options may also be considered. Analysis is planned to determine if the elimination of 15A NCAC 2D
.0518(d) makes a difference in ambient ozone concentration. If a new rule is proposed, it would be placed in Section
15A NCAC 2D .0900, Volatile Organic Compounds, and would be statewide in effect.
With the elimination of 15A NCAC 2D .0518, rules 15A NCAC 2D .0948, VOC Emissions from Transfer Operations,
and .0949, Storage of Miscellaneous Volatile Organic Compounds, would need amending to extend them statewide
to replace similar requirements currently in 15A NCAC 2D .0518. Other clarifying revisions may also be made to
these two rules. Rule 15A NCAC 2D .0902, Applicability, would need amending to identify the new rules that would
be effective statewide. Also Rule 15A NCAC 2D .0950, Interim Standards for Certain Source Categories, could be
repealed and pertinent parts of this Rule could be placed in Rule 15A NCAC 2D .0951, Miscellaneous Volatile Organic
Compound Emissions. Further, the coating rules in Section 15A NCAC 2D .0900 could be amended to remove the
grandfather provision, which would no longer be needed with the repeal of 15A NCAC 2D .0518. Several other rules
may need amending to correct cross-references.
In summary the anticipated action includes adopting one new rule, repealing two rules (15A NCAC 2D .0518 and
.0950) and amending 15A NCAC 2D .0902, .0909, .0917 - .0924, .0934, .0948, .0949 and .0951 and 2Q .0102.
APA #: E2131
11:19 NORTH CAROLINA REGISTER January 2, 1997 1410
RULE-MAKING AGENDA
SUBJECT: Transportation Conformity
RULE CITATION #: 15A NCAC 2D .1500
STATUTORY AUTHORITY: G.S. 143-215.3(a)(l); 143-215. 107(a)(10)
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To revise the transportation conformity rules to change citations of referenced Code of Federal Regulations.
SCOPE/NATURE/SUMMARY:
EPA is in the process of combining the transportation conformity rules contained in 40 CFR Part 51 with those
contained in 40 CFR Part 93. This change will require amending the rules in Section 15A NCAC 2D .1500,
Transportation Conformity, to change the citations of the referenced Code of Federal Regulations from the rules
contained in 40 CFR Part 51 to those in 40 CFR Part 93. Some other minor changes may also have to be made to rules
in this Section in order to incorporate the federal requirements for transportation conformity.
APA #: E2134
SUBJECT: Ocean Mining
RULE CITATION #: 15A NCAC 7M .1200; 7H .0106; 7H .0208(b)(ll)
STATUTORY AUTHORITY: G.S. 113A-102; 113A-107; 113A-107(b); 113A-108; 113A-1 13(b); 113A-124
DIVISION/SECTION: COASTAL MANAGEMENT
DIVISION CONTACT: Kim Crawford
DIVISION CONTACT TEL#: (919)733-2293
DATE INITIATED: 12/2/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
The CRC currently has no specific use standards for mining hard minerals in ocean waters. Offshore mining for
phosphates and sand and gravel is a distinct possibility in the future as nearshore and land-based sources become
depleted. There are studies underway by state and federal agencies to determine if there are suitable sources of sand
offshore for beach renourishment. The general use standards for public trust AECs are not adequate to review a
development proposal for offshore mining. In addition, the Mining Act does not cover areas less than an acre. Nor
does the Division of Land Resources permit minin g activities that are non-commercial.
SCOPE/NATURE/SUMMARY:
As written, this rule would provide a review of activities that would not fall under the purview of the Mining Act.
The rule requires mitigation and restoration of affected areas, and protects critical habitat and resources, such as natural
and artificial reefs, coral outcrops and shipwrecks.
The general policy for ocean mining clarifies that the state has an interest in mining activities in both state and federal
waters, since mining activities beyond three miles have the potential to impact coastal resources. The policy further
states that the usefulness, productivity and other values of the state's ocean waters shall be protected, foremost, and
restored if there are impacts from mining activities.
Mining is defined to include areas that are not subject to review under the Mining Act. The proposed rule also
specifies that dredging activities for the purposes of mining must meet the standards in the rule.
APA #: H6531
SUBJECT: Law and Rules for Sewage Treatment and Disposal Systems
RULE CITATION #: 15A NCAC 18A.1937, .1938, .1958, .1961
STATUTORY AUTHORITY: G.S. 130A-335(e),(f)
DIVISION/SECTION: ENVIRONMENTAL HEALTH/ONSITE WASTEWATER INSPECTIONS
DIVISION CONTACT: William Jeter
DIVISION CONTACT TEL#: (919)715-3274
1411 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
DATE INITIATED: 10/31/96
DURATION OF RULE: Temporary 11/15/96
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
The proposed Temporary Rules are necessary because of amendments to G.S. 130-333 et seq., Wastewater Systems,
enacted by the Legislature during the Short Sessions of 1996.
The principle amendments are 1) the addition of an Improvement Permit that is valid for five (5) years, 2) definitions
of a plat and a site plan, 3) the redefinition of the period of validity for an authorization for wastewater system
construction to be up to five (5) years, and 4) the addition of a subsection to allow for the withholding of funds to local
health departments under certain conditions.
SCOPE/NATURE/SUMMARY:
Those portions of the rules for sewage treatment and disposal systems, 15A NCAC 18A 1900 et seq., that govern the
permits required for the installation, operation, and repair of systems that discharge to the land's subsurface, 18A
. 1937, are proposed to be changed in order that they may accurately reflect the amendments, enacted by the Legislature
during the 1996 Short Sessions. These proposed temporary rules were reviewed by representatives of the field
personnel, supervisors, and directors of local health departments.
APA #: H6532
SUBJECT: Birth Defects Monitoring Program
RULE CITATION #: 15A NCAC 26C .0001- .0007
STATUTORY AUTHORITY: G.S.
DIVISION/SECTION: HEALTH AND ENVIRONMENTAL STATISTICS
DIVISION CONTACT: Jan Ellington
DIVISION CONTACT TEL#: (919)715-4402
DATE INITIATED: 10/31/96
DURATION OF RULE: Permanent 8/1/98
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
Senate Bill 818, which was ratified in the 1995 session of the General Assembly, amended Article 5 of Chapter 130A
by adding Part 7, "Birth Defects". This new part establishes the Birth Defects Monitoring Program within the State
Center for Health Statistics, and directs the Commission to adopt rules pertaining to the use of monitoring program
information for scientific research.
SCOPE/NATURE/SUMMARY:
This rule covers the major components of the design and operation of the Birth Defects Monitoring Program. Because
this legislation expands the scope of birth defects data collection activities to include hospital medical records, the scope
of the proposed rule is broadened to cover monitoring program operations related to data access and collection, in
addition to confidentiality issues. Specific areas addressed by this rule are: 1) required skills, training, and expertise
of monitoring program staff; 2) development, composition, and functions of the Birth Defects Advisory Committee;
3) operational procedures, including case definition, data sources, and procedures for accessing and abstracting hospital
medical records; 4) procedures for safeguarding confidentiality of monitoring program information; and 5) specific
guidelines for the release of monitoring program information for scientific research.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1412
RULE-MAKING PROCEEDINGS
A Notice ofRule-making Proceedings is a statement of subject matter of the agency 's proposed rule making. The agency
must publish a notice of the subject matterfor public comment at least 60 days prior to publishing the proposed text of
a rule. Publication of a temporary rule serves as a Notice of Rule-making Proceedings and can befound in the Register
under the section heading of Temporary Rules. A Rule-making Agenda published by an agency serves as Rule-making
Proceedings and can befound in the Register under the section heading of Rule-making Agendas. Statutory reference:
G.S. 150B-21.2.
TITLE 19A - DEPARTMENT OF
TRANSPORTATION
TITLE 26 - OFFICE OF ADMINISTRATIVE
HEARINGS
CHAPTER 3 - DmSION OF MOTOR VEHICLES CHAPTER 2 - RULES DrVTSION
A Totice of Rule-making Proceedings is hereby given by the
1 VNorth Carolina Department of Transportation - Division
ofMotor Vehicles in accordance with G.S. 150B-21.2. The
agency shall subsequently publish in the Register the text of
the rule(s) it proposes to adopt as a result of this notice of
rule-making proceedings and any comments received on this
notice.
Citation to Existing Rules Affected by this Rule-Making:
19A NCAC 031 .0100- . 0800
Authority for the rule-making: G.S. 20-1; 20-39(b); 20-
320 through 20-339
Statement of the Subject Matter: Rules set parametersfor
commercial driver training schools and provide information
about the schools and driver training program.
Reason for Proposed Action: Proposed changes will
correct grammatical errors and clarify information regarding
commercial driver training schools.
Comment Procedures: Any interested person may submit
written comments on the proposed rules by mailing the
comments to Emily Lee, Department of Transportation , PO
Box 25201, Raleigh, NC 27611, within 30 days after the
proposed rules are published.
\ Totice of Rule-making Proceedings is hereby given by the
1 1 Office of Administrative Hearings in accordance with
G.S. 150B-21.2. The agency shall subsequently publish in
the Register the text of the rule it proposes to adopt as a
result of this notice of rule-making proceedings and any
comments received on this notice.
Citation to Existing Rules Affected by this Rule-Making:
26 NCAC 2C
Authority for the rule-making: G.S. 150B-21.17, 150B-
21.19
Statement of the Subject Matter: Rules establish the
requirements for submitting rules to be published in the
Register and rules codified in the Code.
Reason for Proposed Action: Pursuant to Ratified House
Bill 53, Sec. 8.5, of the 1996 Second Extra Session, the
General Assembly appropriated funds for a comprehensive
rules management system. This system will automate many
functions in the OAH Rules Division and provide electronic
access to thesefunctions by the General Assembly, the Office
of Administrative Hearings, and the Rules Review
Commission. The new rules management system will require
changes to existing publication rules and may require the
adoption of additional rules in 26 NCAC 2C. With the
implementation of the management system, it may be
necessaryfor the new rules and the changes to existing rules
be adopted as temporary rules.
Comment Procedures: Written comments should be mailed
to: Anna Baird, Rule-making Coordinator, PO Drawer
27447, Raleigh, NC 27611-7447, or may be hand delivered
to 424 N. Blount Street, Raleigh, NC.
1413 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
This Section contains the text ofproposed rules. At least 60 days prior to the publication of text, the agency published
a Notice ofRule-making Proceedings. The agency must accept comments on the proposed rulefor at least 30 daysfrom
the publication date, or until the public hearing, or a later date if specified in the notice by the agency. The required
comment period is 60 daysfor a rule that has a substantial economic impact ofat leastfive million dollars ($5,000,000).
Statutory reference: G.S. 150B-21.2.
TITLE 1 - DEPARTMENT OF ADMINISTRATION
Notice is hereby given in accordance with G.S.
150B-21.2 that the State Building Commission intends
to adopt rules cited as 1 NCAC 30G .0101 - .0105. Notice
ofRule-making Proceedings was published in the Register on
May 15, 1996.
Proposed Effective Date: August 1, 1998
Instructions on How to Demand a Public Hearing (must be
requested in writing within 15 days of notice): A demandfor
a public hearing must be made in writing, addressed to R.
Glen Peterson, Department of Administration, 116 West
Jones Street, Raleigh, NC 27603-8003. The demand must be
received within 15 days ofpublication of this notice.
Reason for Proposed Action: These Rules are proposed to
establish procedures and criteria by which the State Building
Commission can evaluate requests to use alternative
contracting methods in public construction, as authorized by
the 1995 General Assembly.
Comment Procedures: Any interested person may submit
written comments on the proposed rules to R Glen Peterson,
Department of Administration, 116 West Jones Street,
Raleigh, NC 27603-8003. Comments must be received no
later than 5:00 p.m. on February 3, 1997.
Fiscal Note: Rules 1 NCAC 30G . 0101 - . 0103 do not affect
the expenditures or revenues of state or local government
funds. These Rules do not have a substantial economic
impact of at leastfive million dollars ($5,000,000) in a 12-
month period. Rules 1 NCAC 30G .0104 - .0105 do affect
the expenditures or revenues of state or local government
funds. These Rules do not have a substantial economic
impact of at leastfive million dollars ($5,000,000) in a 12-
month period.
CHAPTER 30 - STATE CONSTRUCTION OFFICE
SUBCHAPTER 30G - STATE BUILDING
COMMISSION PROCEDURES AND CRITERIA FOR
AUTHORIZATION TO USE AN ALTERNATIVE
CONTRACTING METHOD
SECTION .0100 - GENERAL PROVISIONS
.0101 AUTHORITY
The State Building Commission, hereinafter referred to as
SBC, is a statutory body, empowered by law to perform a
multiplicity of duties with regard to the State's capital
facilities development and management program. In the
specific area of State capital improvement project
requirements for building contracts, the SBC is empowered
by G.S. 143-135.26 to adopt procedures which allows a State
agency or institution, a local governmental unit, or any other
entity subject to the provisions of G.S. 143-129 to use a
method of contracting not authorized under G.S. 143-128.
The use of any other alternative method shall be approved jn
advance by the SBC for any single project.
Authority G.S. 143-135.26.
.0102 POLICY
To assure that the public trust is carefully exercised, the
North Carolina General Assembly has enacted a number of
special procedures for the letting and administration of public
construction contracts. They also help to assure that public
owners receive good value in their expenditure of the public
funds and that they do not pay excessive prices for
construction. Therefore, it is the policy of the SBC that the
public's interest is typically best served by the letting of
public construction contracts pursuant io these special
statutory procedures, particularly the provisions of G.S. 143-
128. Nevertheless, the SBC recognizes that extraordinary
circumstances do arise which justify an exemption from the
methods of contracting authorized under G.S. 143-128. The
categories of exemptions and other criteria set forth herein
are designed to provide a fair and uniform means by which
the SBC can determine that the requisite justifications to
obtain an exemption have been adequately demonstrated.
Authority G.S. 143-135.26.
.0103 DEFINITIONS
For the purposes of these Procedures and Criteria, the
following definitions shall apply:
(1) "Alternative contracting method" includes by way
of example, but not limited to:
£a) the sin gle-prime contracting system, not
otherwise authorized under G.S. 143-128.
(b) the design-build delivery system, or
(cl the construction management delivery
system.
(21 "Chairman" means the Chairman of the State
Building Commission.
(3) "Construction management delivery system" means
11:19 NORTH CAROLINA REGISTER January 2, 1997 1414
PROPOSED RULES
the alternative contracting method where the public
owner contracts for a fee with a single person, but
not the project general contractor, who administers
contracts with separate contractors for the
construction of the project and who is responsible
as agent to the public owner for the coordination
and management of the project, but where the
public owner remains liable to the separate
contractors.
(4) "Design-build delivery system" means that the
public owner contracts for a fee with a single
person for the design, management and
construction of a project.
(5) "Director" means the Director of the State
Construction Office.
(6) "Exemption" means the grant of authorization by
the SBC for the use of a method of contracting not
otherwise authorized under G.S. 143-128.
£7) "Person" means a person, firm or corporation.
(8) "Project" means the building or facility for which
an exemption is requested by the public owner.
and upon which the work will be performed.
(91 "Public owner" means a state agency or institution.
a local government unit, or any other entity subject
to the provisions of G.S. 143-129.
( \0) "SBC" means the State Building Commission.
(11) "Work" means the erection, repair, construction.
renovation or alteration to be performed upon a
building or facility.
Authority G.S. 143-135.26.
.0104 GENERAL PROCEDURES
(a) Application Form - The SBC shall establish a form of
application, along with a copy of the rules for application
approved by the SBC, to be used by public owners requesting
an exemption, which shall upon request be provided to public
owners. A completed application shall contain all of the
information necessary to enable the SBC to determine the
appropriateness and merits of approving an exemption.
(b) Rules for Application ; The SBC shall establish rules
for application to be used by public owners requesting an
exemption, which shall upon request be provided to public
owners.
(c) Review of Application:
f 1) The public owner shall submit the application to
the State Construction Office. Attention: Director-
Department of Administration. New Education
Building. Suite 450. 301 North Wilmington Street.
Raleigh. North Carolina 27601-2827. The
Director shall review the application upon its
receipt. If the Director determines that the
application is not complete, he shall return the
application to the public owner along with a
written notice of the reasons for the return.
Despite the return of an application, a public
owner may request hi writing to the Director that
the SBC consider the application as. originally
submitted, and the notice of return to die public
owner shall so state this option. An application
shall be considered abandoned if ii is returned
pursuant to this Section, and no further action is
taken by the public owner to satisfy the reasons for
its return.
(2) The SBC shall generally meet once per month to
review applications and to conduct its other
business. Completed applications shall be
considered within 60 days of receipt by the
Director of the completed application. Once
scheduled for consideration by the SBC, the public
owner shall be given notice of the date, time and
location of the SBC meeting at which the
application shall be considered.
£3} The SBC shall only accept written applications.
After due consideration of these applications, the
SBC shall take one of the following actions:
(A) Delay consideration of the application:
£B) Deny the application: or
(C) Approve the application.
Within five days of the SBC's action upon the
application, notice of the same shall be sent to the
public owner, and to the Director. Upon a delay
of consideration pursuant to Paragraph (a) of this
Rule, the SBC shall immediately request from the
public owner or other person further information
required in order to make a determination, or
provide the public owner with notice of other good
cause existing for the delay.
(d) Approval of an Application - Approval of an
application authorizes the public owner to utilize only the
alternative contracting method as proposed by the public
owner and no other method of contracting. Approval of an
application shall be effective for a period to be determined by
the SBC but not exceeding 12 months, unless that effective
time period is extended by the SBC upon good cause shown
by the public owner. The extension of an effective time
period shall be for no more than 12 months and shall run
from the last day of the prior effective time period. The
effective time period shall run from the date the SBC
approves the application.
(el Voting ; The authorization for an alternative
contracting method shall be approved by two-thirds of the
members of the SBC present and voting . A member of the
SBC is not qualified to vote upon any matter or influence any
other member's vote upon any matter in which he has a
conflict of interest. A conflict of interest, as related to
members of the SBC, is defined in G.S. 143-135.28.
(fl Public Records - The Director shall maintain a list of
applications which states the name of the public owner, the
name of the project, the project amount, a brief description
of the category for which the exemption is sought, and a
record of the SBC's action. Applications, and a record of the
1415 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
SBC's action upon those applications, shall be available for
public inspection.
Authority G.S. 143-135.26.
.0105 CRITERIA FOR CONSIDERATION
(a) General Considerations - Applications shall be subject
to the following general considerations which the SBC shall
utilize in reviewing all applications:
(1) Whether the public owner has adequately justified
that the requested exemption is applicable to the
project.
(21 Whether under the circumstances presented the
project can be reasonably completed under the
methods authorized under G.S. 143-128. and if
not, whether the public owner has adequately
demonstrated that the proposed alternative
contracting method is necessary.
(3) Whether the exemption sought is appropriate and
in the public's interest.
(41 Whether the public owner has been responsible in
the pre-planning stages of the project.
£b) Criteria for Exemptions z The following criteria
describe circumstances where the SBC recognizes that a
project may not be able to be reasonably completed under the
methods authorized by G.S. 143-128. and where the use of
an alternative contracting system, not otherwise authorized
by G.S. 143-128. may be appropriate and in the public's
interest:
(1) Special Technology or Equipment ; The project
involves the erection or construction of special or
unique technology or equipment whose vendor
requires that its services be purchased in
conjunction with the technology or equipment: or
the vendor guarantees the technology or equipment
only if its services are purchased in conjunction
with the technology or equipment.
(21 Unusual Complexity - The project involves one or
more of the following conditions:
(A) very specialized or complex type of
construction involving unconventional
construction techniques or materials, or
unusual working conditions:
(B) major renovations or an addition to an
existing facility requiring continuous
coordination of occupied programs or
operations necessary for the protection of
public health or safety: or
(CI extensive repairs, renovations or an addition
to a major building or facility listed either
in the North Carolina or Federal Register of
Historic Properties.
(31 Accelerated Schedule ; A fast track schedule is
required due to actual or impending judicial
intervention by means of a State or Federal court
order, or to address actual or impending regulatory
mandates or. citation for noncompliance.
Authority G.S. 143-135.26.
TITLE 11 - DEPARTMENT OF INSURANCE
Notice is hereby given in accordance with G.S.
150B-21.2 that the Department of Insurance intends to
adopt rules cited as 11 NCAC 8 .1001 - .1011, .1101 -
.1116, .1201 - . 1209. Notice of Rule-making Proceedings
was published in the Register on November 1 , 1996.
Proposed Effective Date: July 1, 1998
A Public Hearing will be conducted at 9:00 a. m. on January
17, 1997 at N.C. Department of Insurance, 410 N. Boylan
Avenue, Raleigh, NC 27603.
Reason for Proposed Action: To establish licensing
procedures, standards ofpractice, and a code of ethics for
home inspectors as required by law.
Comment Procedures: Written comments may be sent to
Grover Sawyer, Department of Insurance, PO Box 26387,
Raleigh, NC 27611.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 8 - ENGINEERING AND BUILDING
CODES DIVISION
SECTION .1000 - NC HOME INSPECTOR
LICENSURE BOARD
.1001 OFFICERS
The term of each officer shall be one year. Officers shall
serve until a successor is elected and installed. Officers shall
be eli gible for re-election.
Authority G.S. 143-15 1.48(a).
.1002 MEETINGS
(a) Regular Meetings. The date, time, and location of the
Board meetings shall be listed with the Secretary of State's
office. The chairman shall give written notice of the exact
meeting place to each member no later than two weeks before
the meeting. The chairman may reschedule a regular meeting
by giving written notice to all members no later than two
weeks before when the scheduled meeting would normally be
held.
(bl Special Meetings. Written notice of any special
meetings shall be given to aU members of the Board at least
two weeks before the time of the meeting, setting forth the
11:19 NORTH CAROLINA REGISTER January 2, 1997 1416
PROPOSED RULES
time, date, and place of the meeting and the purpose for
which it shall be held. In the event of an. emergency, the
notice period may be shortened as long as every member is
notified before the meeting.
Authority G.S. 143- 15 1.48(b).
.1003 PERSONS AND PRACTICES NOT
AFFECTED
(a) In addition to persons and practices described in G.S.
143-151.62. persons who perform inspections on a single
component of a house are not required to be licensed as long
as they do not represent themselves as home inspectors. Such
persons include chimney sweeps, radon inspectors, heating
and cooling maintenance technicians, and moisture intrusion
inspectors.
Co) Professional en gineers and architects do not need home
inspector licenses to make on site inspections of residential
buildings for which thev are preparing plans, designs, or
specifications. General contractors do not need home
inspector licenses when they inspect a house as part of
preparing an estimate for construction, remodeling, or
repairs.
Authority G.S. 143-151. 49(a)(13).
.1004 EQUTVALENT EXPERIENCE
(a) The Board shall consider equivalent experience of
applicants who do not meet the experience requirements of
G.S. 143-151.51(5) or G.S. 143-151.61. Any one of the
following descriptions of experience is considered sufficient
to meet the equivalent experience requirements:
(1) A bachelor of science degree from any accredited
engineering , architecture or building technology
school and two years experience working in
building design, construction, or inspection of
building, electrical, mechanical, and plumbing
systems.
(2) A two year Associate of Applied Science degree
from an accredited community college or technical
school in building technology, civil engineering-electrical
engineering, mechanical en gineering, or
architecture: and either four years of design
experience in building, electrical, mechanical, and
plumbing systems, or four years experience as an
employee under the direct supervision of a licensed
general (residential or building) contractor who
supervises electrical, mechanical, and plumbing
subcontractors.
(3) Six years experience as an employee under the
direct supervision of a licensed general contractor
(residential or building) performing building
construction and who supervises electrical,
mechanical, and plumbing subcontractors.
(4) Certification by the North Carolina Code Officials
Qualification Board as a Code Enforcement
Official with Standard Level I (or. higher)
inspection certification in four areas: building-electrical,
mechanical, and plumbing.
(5) Any combination of certification listed ia
Paragraph (a)(4) of this Rule and a. license as. an.
electrical contractor dimited or greater) issued by
the NC Board of Electrical Examiners, or a license
as a heating or cooling contractor (HI. H2. or.
H3). or a plumbing contractor issued by the NC
Board of Examiners of Plumbing. Heating and
Fire Sprinkler Contractors, resulting in either a
certificate or a license in four areas in building,
electrical, mechanical, and plumbing contracting
or inspections.
(6} For the purpose of (LS, 143-151. 51(5)a. the
number of completed home inspections for
compensation before October X* 1996. as a home
inspector may be included.
(b) Applicants may submit other experience in the design,
installation, or inspection of buildings and electrical,
mechanical, and plumbing systems. The Board's Application
Evaluation Committee shall consider such experience on a
case-by-case basis.
(c) Graduation in a home inspection course from a training
institute or correspondence school is not sufficient to meet
the equivalent experience alone. However, such courses
should be listed along with other experience.
Authority G.S. 143-151. 49(a)(13); 143-151.51(5)b.
.1005 RECD?ROCITY
If an applicant is licensed as a home inspector m another
state that has laws and rules that are similar to Article 9F of
G.S. 143 and to the rules of the Board, the Board shall accept
that license as evidence of experience. However, the
applicant shall satisfactorily complete the Board's written
examination and other licensing requirements before the
Board shall issue the applicant a license.
Authority G.S. 143-151. 49<a)(13).
.1006 NET ASSETS OR SURETY BOND
To be licensed as a home inspector, an applicant shall
provide proof to the Board that he or she has personal net
assets of five thousand dollars (S5.000) or more. In the
alternative, the applicant shall provide the Board with a cash
bond or a surety bond in the amount of five thousand dollars
(S5.000) or more. Any surety bond shall be written by a
surety company that is authorized by the Commissioner of
Insurance to do business in this State.
Authority G.S. 143-151. 49(a)(13); 143-151.51(3).
.1007 EXAMINATION
An applicant must satisfactorily pass an examination
administered bv the Board. The examination shall be
1417 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
administered at least twice each yean The applicant must
answer 70% of the questions correctly to receive a passing
grade. The examination shall include questions about the
nilgg of the RoarcL Article 9F of G.S. 143. inspections of the
building structures and their components, and electrical,
mechanical . and plumbing systems and appliances.
Authority G.S. 143-151. 49(a)(13); 143-151.51(2).
. 1008 APPLICATIONS FOR LICENSES
Persons may obtain license applications from the Board
after they pay the appropriate fee. Applicants shall return a
completed application form and any supporting
documentation to the Board at least 30 days before the next
scheduled examination. The Board shall notify applicants of
the times, dates, and locations of examinations. If available
space is not sufficient for. the number of applicants.
additional examinations shall be scheduled.
Authority G.S. 143-151. 49(a)(13); 143-151.51.
.1009 DISPLAY OF LICENSE
Home inspectors shall display their licenses at their places
of business. If a home inspector works out of his or her
home, the inspector shall keep the license on file in the
home.
Authority G.S. 143-151. 49(a)(13); 143-151.54.
.1010 APPEALS
The initial evaluations of license applications shall be made
by the Board's staff. Any applicant wishing to appeal the
staff's decision may make a written request for a review to
the Board's Application Evaluation Committee. The
applicant may request a hearing if aggrieved by. the
Committee's decision.
Authority G.S. 143-151. 49(a)(13); 143-151. 56(b).
.1011 FEE SCHEDULE
(a) The following fees apply to the licensure of home
inspectors:
Application for Home Inspector License $25.00
Application for Associate Home Inspector
License $15.00
Home Inspector F.xamination $75.00
Associate Home Inspector Examination $75.00
Initial Issuance of Home Inspector
License $150.00
Initial Issuance of Associate Home
Inspector License $100.00
Annual Renewal of Home Inspector
License $150.00
Annual Renewal of Associate Home
Inspector License $100.00
Late Renewal Penalty Fee ; Home
Inspector License $25.00
Late Renewal Penalty Fee - Associate
Home Inspector License $15.00
Copies of Board Rules and License
Standards $5.00
(b) The home inspector and the associate home inspector
initial issuance license fees are due after successful
completion of the examination. The Board shall not issue a
license until it receives the appropriate fee. The license shall
be valid from the date of issue until the following September
30,
(c) An applicant who fails the examination may reapply
for another examination without payment of another
application fee,. However, the applicant shall pay. the
examination fee for the examination,
Authority G.S. 143-151. 49(a)(13); 143-151.55; 143-151.57.
SECTION .1100 - NC HOME INSPECTOR
STANDARDS OF PRACTICE AND CODE OF
ETHICS
.1101 DEFINTTIONS
The following definitions apply to this Section:
(1) " Automatic safety controls" means devices
designed and installed to protect systems and
components from excessively high or low
pressures and temperatures, excessive electrical
current, loss of water, loss of ignition, fuel leaks,
fire, freezing , or other unsafe conditions.
(2) "Central air conditioning" means a system that
uses ducts to distribute cooled and/or dehumidified
air to more than one room or uses pipes to
distribute chilled water to heat exchangers in more
than one room, and that is not plugged into an
electrical convenience outlet.
(31 "Component" means a readily accessible and
observable aspect of 3 system, such a§ a floor, or
wall, but not individual pieces such as boards or
nails where many similar pieces make up the
component.
(4) "Cross connection" means any physical connection
or arrangement between potable water and any
source of contamination.
(5) "Dangerous or adverse situations" means situations
that pose a threat of injury to the inspector, or
those situations that require the use of special
protective clothing or safety equipment.
(6) "Describe" means report in writing a system or
component by its type, or other observed
characteristics, to distinguish it from other
components used for the same purpose.
(7) "Dismantle" means to take apart or remove any
component, device or piece of equipment that is
bolted, screwed, or fastened by other means and
that would not be dismantled by a homeowner in
11:19 NORTH CAROLINA REGISTER January 2, 1997 1418
PROPOSED RULES
the course of normal household maintenance.
(8) "Enter" means to go into an area to observe all
visible components.
(91 "Functional drainage" means a drain is functional
when it empties ia a reasonable amount of time and
does not overflow when another fixture is drained
simultaneously.
(10) "Functional flow" means a reasonable flow at the
highest fixture in a dwelling when another fixture
is operated simultaneously.
(11) "Installed" means attached or connected such that
the installed item requires tools for removal.
( 12) "Normal operating controls" means homeowner
operated devices such as a thermostat, wall switch,
or safety switch.
(13) "Observe" means the act of making a visual
examination.
(14) "On-site water supply quality" means water quality
is based on the bacterial, chemical, mineral, and
solids content of the water.
(151 "On-site water supply quantity" means water
quantity is the rate of flow of water.
(16) "Operate" means to cause systems or equipment to
function.
(171 "Readily openable access panel" means a panel
provided for homeowner inspection and
maintenance that has removable or operable
fasteners or latch devices in order to be lifted off.
swung open, or otherwise removed by one person:
and its edges and fasteners are not painted in place.
This definition is limited to those panels within
normal reach or from a four-foot stepladder. and
that are not blocked by stored items, furniture, or
building components.
( 18) "Representative number" means for multiple
identical components such as windows and
electrical outlets ; one such component per room.
For multiple identical exterior components ; one
such component on each side of the building .
(19) "Roof drainage systems" means gutters,
downspouts, leaders, splashblocks. and similar
components used to carry water off a roof and
away from a building.
(20) "Shut down" means a piece of equipment or a
system is shut down when h cannot be operated by
the device or control that a home owner should
normally use to operate it. If its safety switch or
circuit breaker is in the "off" position, or its fuse
is mi ssing or blown, the inspector is not required
to reestablish the circuit for the purpose of
operating the equipment or system.
(21
)
"Solid fuel heating device" means any wood, coal.
or other similar organic fuel burning device,
including but not limited to fireplaces whether
masonry or factory built, fireplace inserts and
stoves, woodstoves (room heaters), central
furnaces, and combinations of these devices.
(22) "Structural component" means a component that
supports non-variable forces or weights (dead
loads) and variable forces or weights (live loadsl.
(231 "System" means a. combination of interacting or
interdependent components, assembled to carry out
one or more functions.
(241 "Technically exhaustive" means an inspection
involving the extensive use of measurements.
instruments, testing, calculations, and other means
to develop scientific or engineering findings.
conclusions, and recommendations.
(251 "Underfloor crawl space" means the area within
the confines of the foundation and between the
ground and the underside of the lowest floor
structural component.
Authority G.S. 143-151. 49(a)(2); 143-151. 49(a)(13).
. 1 102 STANDARDS OF PRACTICE
This Section sets forth the minimum standards of practice
required of licensed home inspectors and licensed associate
home inspectors. In this Section, the term "home inspectors"
means both licensed home inspectors and licensed associate
home inspectors.
Authority G.S. 143-151. 49(a)(2); 143-151. 49(a)(13).
.1103 PURPOSE AND SCOPE
(a) Home inspections performed according to this Section
shall provide the client with a better understanding of the
property conditions, as observed at the time of the home
inspection.
£b) Home inspectors shall:
(11 Provide a written, signed contract that shall:
(A1 State that the home inspection is in
accordance with this Section of the North
Carolina Home Inspector Licensure Board:
(B) Describe what services shall be provided
and their cost: and
(CI State, when an inspection is for only one or
a limited number of systems or components,
that the inspection is limited to only those
systems or components:
(21 Observe readily visible and accessible installed
systems and components listed in this Section: and
(31 Submit a written report to the client that shall:
(A1 Describe those systems and components
specified to be described ia Rules . 1 106
through .1 1 15 of this Section:
(B1 State which systems and components
designated for inspection ia this Section
have been inspected, and state any systems
or components designated for inspection
that were not inspected, and the reason for
not inspecting:
1419 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
(CI State any systems or components so
inspected that do not function as intended,
allowing for normal wear and tear, or
adversely affect the habitability of the
dwelling: and
(D1 State the name, license number, and
signature of the person supervising the
inspection and the name, license number,
and signature of the person conducting the
inspection.
£cj This Section does not limit home inspectors from:
(11 Reporting observations and conditions or rendering
opinions of items in addition to those required in
Paragraph fbl of this Rule: or
(21 Excluding systems and components from the
inspection if requested by the client, and so stated
in the written contract.
Authority G.S. 143-151. 49(a)(13).
. 1 1 04 GENERAL LIMITATIONS
(a) Inspections done in accordance with this Section are
visual and are not technically exhaustive.
£b) This Section applies to buildings with four or less
dwelling units, and individually owned residential units
within multi-family buildings, and their attached garages or
carports.
Authority G.S. 143-151. 49(a)(13).
.1105 GENERAL EXCLUSIONS
(al Home inspectors are not required to report on:
(11 Life expectancy of any component or system:
(21 The causes of the need for a repair:
(31 The methods, materials, and costs of corrections:
(41 The suitability of the property for any specialized
use:
(51 Compliance or. non-compliance with codes.
ordinances, statutes, regulatory requirements or
restrictions:
(61 The market value of the property or its
marketability:
(71 The advisability or inadvisability of purchase of
the property:
(81 Any component or system that was not observed:
(91 The presence or absence of pests such as wood
damaging organisms, rodents, or insects: or
(101 Cosmetic items, underground items, or items not
permanently installed.
(bl Home inspectors are not required to:
(11 Offer or perform any act or service contrary to
law:
(21 Offer warranties or guarantees of any kind:
(31 Offer or perform engineering, architectural.
plumbing, electrical or any other job function
requiring an occupational license in the jurisdiction
14J
ill
m
ill
m
urn
mi
(121
021
£14}
where the inspection is taking place, unless the
home inspector holds a valid occupational license.
in which case the home inspector may inform the
client that the home inspector is so licensed, and i§
therefore qualified to go beyond this Section and
perform additional inspections beyond those within
the scope of the basic inspection:
Calculate the strength, adequacy, or efficiency of
any system or component:
Enter any area or perform any procedure that: may
damage tie property or its components or he
dangerous to the home inspector or other persons:
Operate any system or component that is shut
down or otherwise inoperable:
Operate any system or component that does not
respond to normal operating controls:
Disturb insulation, move personal items, panels-furniture,
equipment, plant life, soil, snow, ice, or
debris that obstructs access or visibility:
Determine the presence or absence of any
suspected adverse environmental condition or
hazardous substance, including but not limited to
toxins, carcinogens, noise, contaminants in. the
building or in soil, water, and air:
Determine the effectiveness of any system installed
to control or remove suspected hazardous
substances:
Predict future condition, including but not limited
to failure of components:
Project operating costs of components:
Evaluate acoustical characteristics of any system or
component: or
Observe special equipment or accessories that are
not listed as components to be observed in. this
Section.
Authority G.S. 143-151. 49(a)(13).
. 1 106 STRUCTURAL COMPONENTS
(a) The home inspector shall observe structural
components including:
(11 Foundation:
(21 Floors:
Ql Walls:
(41 Columns or piers:
(51 Ceilings: and
£6) Roofs,
(bl The home inspector shall describe the type of:
(11 Foundation:
(21 Floor structure:
(31 Wall structure:
(41 Columns or piers:
(51 Ceiling structure: and
(61 Roof structure,
(cl The home inspector shall:
(11 Probe structural components where deterioration is
11:19 NORTH CAROLINA REGISTER January 2, 1997 1420
PROPOSED RULES
suspected, except where probing would damage
any surface:
(21 Enter underfloor crawl spaces, basements, and
attic spaces except when access is obstructed, when
entry could damage the property, or when
dangerous or. adverse situations are suspected:
(3) Report the methods used to observe underfloor
crawl spaces and attics: and
£4} Report signs of abnormal or harmful water
penetration into the building or signs of abnormal
or harmful condensation on building components.
Authority G.S. 143-151. 49(a)(13).
.1107 EXTERIOR
(a) The home inspector shall observe:
(1) Wall cladding, flashings, and trim:
£2} Entrywav doors and a representative number of
windows:
(31 Garage door operators:
£4} Decks, balconies, stoops, steps, areaways. porches
and applicable railings:
(51 Eaves, soffits, and fascias: and
(6) Vegetation, grading, drainage, driveways, patios.
walkways, and retaining walls with respect to their
effect on the condition of the building,
(bl The home inspector shall:
(It Describe wall cladding materials:
(21 Operate all entrywav doors and a representative
number of windows:
(3) Operate garage doors manually or by. using
permanently installed controls for any garage door
operator: and
(4) Report whether or not any garage door operator
will automatically reverse or stop when meeting
reasonable resistance during closing .
(ct The home inspector is not required to observe:
(It Storm windows, storm doors, screening, shutters.
awnings, and similar seasonal accessories:
(21 Fences:
(31 Presence of safety glazing in doors and windows:
(4) Garage door operator remote control transmitters:
(51 Geological conditions:
(61 Soil conditions:
(71 Recreational facilities (including spas, saunas.
steam baths, swimming pools, tennis courts.
playground equipment, and other exercise.
entertainment, or athletic facilitiesl:
(81 Detached buildings or structures: or
(91 Presence or condition of buried fuel storage tanks.
Authority G.S. 143-151. 49(a)(13).
.1108 ROOFING
(at The home inspector shall observe:
( 11 Roof coverings:
(21 Roof drainage systems:
(31 Flashings:
£4} Skylights, chimneys, and roof penetrations: and
(51 Signs of leaks or abnormal condensation on
building components,
(bl The home inspector shall:
(It Describe the type of roof covering materials: and
(21 Report the methods used to observe the roofing.
(cl The home inspector is not required to:
(11 Walk on the roofing: or
(21 Observe attached accessories including but not
limited to solar systems, antennae, and lightning
arrestors.
Authority G.S. 143-151. 49(a)(13).
.1109 PLUMBING
(at The home inspector shall observe:
(It Interior water supply and distribution system.
including: piping materials, supports, and
insulation: fixtures and faucets: functional flow:
leaks: and cross connections;
(21 Interior drain, waste, and vent system, including:
traps: drain, waste, and vent piping: piping
supports and pipe insulation: leaks: and functional
drainage:
(31 Hot water systems including: water heating
equipment: normal operating controls: automatic
safety controls: and chimneys, flues, and vents:
(41 Fuel storage and distribution systems including:
interior fuel storage equipment, supply piping .
venting, and supports: leaks: and
(51 Sump pumps,
(bl The home inspector shall describe:
(11 Water supply and distribution piping materials:
(2) Drain, waste, and vent piping materials:
(31 Water heating equipment: and
(4) Location of main water supply shutoff device.
(cl The home inspector shall operate all plumbing fixtures-including
their faucets and all exterior faucets attached to the
house, except where the flow end of the faucet is connected
to an appliance.
(dl The home inspector is not required to:
(11 State the effectiveness of anti-siphon devices:
(21 Determine whether water supply and waste
disposal systems are public or private:
(3) Operate automatic safety controls:
(41 Operate any valve except water closet flush valves,
fixture faucets, and hose faucets:
(51 Observe:
(At Water conditioning systems:
(B) Fire and lawn sprinkler systems:
(Cl On-site water supply quantity and quality:
(Dl On-site waste disposal systems:
(El Foundation irrigation systems:
(Ft Spas, except as to functional flow and
1421 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
m
ctional drainage;
{G} Swimming pools:
(HI Solar water heating equipment: or
Observe the system for proper sizing, design, or.
use of proper materials.
Authority G.S. 143-151. 49(a)(13).
.1110 ELECTRICAL
(a) The home inspector shall observe:
(11 Service entrance conductors:
(21 Service equipment, grounding equipment, main
overcurrent device, and main and distribution
panels:
(31 Amperage and voltage ratings of the service:
(41 Branch circuit conductors, their overcurrent
devices, and the compatibility of their ampacities
and voltages:
(51 The operation of a representative number of
installed ceiling fans, lighting fixtures, switches
and receptacles located inside the house, garage,
and on the dwelling's exterior walls:
(61 The polarity and grounding of all receptacles
within six feet of interior plumbing fixtures, and
all receptacles in the garage or carport, and oq the
exterior of inspected structures:
(71 The operation of ground fault circuit interrupters:
and
(81 Smoke detectors,
(bl The home inspector shall describe:
(11 Service amperage and voltage:
(21 Service entry conductor materials:
(31 Service type as being overhead or underground:
and
(41 Location of main and distribution panels.
(cl The home inspector shall report any observed
aluminum branch circuit wiring.
(dl The home inspector shall report on presence or
absence of smoke detectors, and operate their test function.
if accessible, except when detectors are part of a central
system.
(el The home inspector is not required to:
(11 Insert any tool, probe, or testing device inside the
panels:
(21 Test or operate any overcurrent device except
ground fault circuit interrupters:
(31 Dismantle any electrical device or control other
than to remove the covers of the main and
auxiliary distribution panels: or
(41 Observe:
(A1 Low voltage systems:
(Bl Security system devices, heat detectors, or
carbon monoxide detectors:
(CI Telephone, security, cable TV. intercoms.
or other ancillary wiring thai is Q2i a. part of
the primary electrical distribution system: or
(Dl Built-in vacuum equipment.
Authority G.S. 143-151. 49(a)(13).
.1111 HEATING
(al The home inspector shall observe permanently installed
heating systems including:
(11 Heating equipment:
(21 Normal operating controls:
Qi Automatic safety controls:
£4} Chimneys, flues, and vents, where readily visible:
(51 Solid fuel heating devices:
(61 Heat distribution systems including fans, pumps.
ducts and piping, wjth supports, insulation, air
Filters, registers, radiators, fan coil units,
convectors: and
(71 The presence of an installed heat source m each
room.
(bl The home inspector shall describe:
(11 Energy source: and
(21 Heating equipment and distribution type.
(cl The home inspector shall operate the systems using
normal operating controls.
(dl The home inspector shall open readily openable access
panels provided by the manufacturer or installer for routine
homeowner maintenance.
(el The home inspector is not required to:
(11 Operate heating systems when weather conditions
or other circumstances may cause equipment
damage:
(21 Operate automatic safety controls:
(31 Ignite or extinguish solid fuel fires: or
(41 Observe:
(Al The interior of flues:
(Bl Fireplace insert flue connections:
(Cl Humidifiers:
(Dl Electronic air filters: or
(El The uniformity or adequacy of heat supply
to the various rooms.
Authority G.S. 143-151. 49(a)(13).
. 1 1 12 CENTRAL AIR CONDITIONING
(al The home inspector shall observe:
(11 Central air conditioning systems including :
(Al Cooling and air handling equipment: and
(Bl Normal operating controls.
(21 Distribution systems including :
(Al Fans, pumps, ducts and piping , with
associated supports, dampers, insulation, air
filters, re gisters, fan-coil units: and
(Bl The presence of an installed cooling source
in each room,
(bl The home inspector shall describe:
(11 Energy sources: and
(21 Cooling equipment type.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1422
PROPOSED RULES
(cl The home inspector shall operate the systems using
normal operating controls.
(d) The home inspector shall open readily openable access
panels provided by the manufacturer or installer for routine
homeowner maintenance,
£e) The home inspector is not required toi
Cn Operate cooling systems when weather conditions
or other circumstances may cause equipment
damage;
(2) Observe non-central air conditioners: or
(3) Observe the uniformity or adequacy of cool-air
supply to the various rooms.
Authority G.S. 143-151. 49(a)(13).
.1113 INTERIORS
(a) The home inspector shall observe:
(1) Walls, ceiling, and floors:
(21 Steps, stairways, balconies, and railings:
(3) Counters and a representative number of cabinets:
and
(41 A representative number of doors and windows,
(bl The home inspector shall:
(1) Operate a representative number of windows and
interior doors: and
(2} Report signs of abnormal or harmful water
penetration into the building or signs of abnormal
or harmful condensation on building components.
(c) The home inspector is not required to observe:
(11 Paint, wallpaper, and other finish treatments on the
interior walls, ceilings, and floors:
(21 Carpeting: or
(3) Draperies, blinds, or other window treatments.
Authority G.S. 143-151. 49(a)(13).
.1114 INSULATION AND VENTILATION
(a) The home inspector shall observe:
unfinished
£41
(1) Insulation and vapor retarders in
spaces:
Ventilation of attics and foundation areas;
Kitchen, bathroom, and laundry venting systems;
and
The operation of any readily accessible attic
ventilation fan, and, when temperature permits, the
operation of any readily accessible thermostatic
control.
£b) The home inspector shall describe:
(1) Insulation in unfinished spaces; and
(21 Absence of insulation in unfinished space at
conditioned surfaces.
(cl The home inspector is not required to report on:
(1) Concealed insulation and vapor retarders: or
(2) Venting equipment that is integral with household
appliances.
Authority G.S. 143-151. 49(a)(13).
.1115 BUILT-IN KITCHEN APPLIANCES
(al The home inspector shall observe and operate the basic
functions of the following kitchen appliances:
(11 Permanently installed dishwasher, through its
normal cycle:
(21 Range, cook top, and permanently installed oven:
(31 Trash compactor:
(41 Garbage disposal:
(51 Ventilation equipment or range hood: and
(61 Permanently installed microwave oven,
(bl The home inspector is not required to observe:
(11 Clocks, timers, self-cleaning oven function, or
thermostats for calibration or automatic operation:
(2) Non built-in appliances: or
(31 Refrigeration units,
(cl The home inspector is not required to operate:
(11 Appliances in use: or.
(21 Any appliance that is shut down or otherwise
inoperable.
Authority G.S. 143-151. 49(a)(13).
.1116 CODE OF ETHICS
(al Licensees shall discharge their duties with fidelity to
the public, their clients, and with fairness and impartiality to
alL
fbl Opinions expressed by licensees shall only be based on
their education, experience, and honest convictions.
(cl A licensee shall not disclose any information about the
results of an inspection without the approval of the client for
whom the inspection was performed, or the client's
designated representative.
(d) N_o licensee shall accept compensation or any other
consideration from more than one interested party for the
same service without the consent of all interested parties.
(el No licensee shall accept or offer commissions or
allowances, directly or indirectly, from other parties dealing
with the client In connection with work for which the
licensee is responsible.
(f) No licensee shall express, within the context of an
inspection, an appraisal or opinion of the market value of the
inspected property.
(gl Before the execution of a contract to perform a home
inspection, a licensee shall disclose to the client any interest
in a business that may affect the client. No licensee shall
allow his or her interest In any business to affect the qualify
or results of the inspection work that the licensee may be
called upon to perform.
(hi Licensees shall not engage in false or misleading
advertising or otherwise misrepresent any matters to the
public.
Authority G.S. 143-151. 49(a)(13).
1423 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
SECTION .1200 - DISCIPLINARY ACTIONS
.1201 DEFINITIONS
The following definitions are used in this Section:
(11 The definitions in G.S. 143-151.45 are
incorporated into this Section by reference.
"Associate home inspector" is included where
reference is made to "home inspector" or
"licensee".
(2) "File or filing" means to place the paper or item to
be filed into the care and custody of the presiding
officer, and acceptance thereof by him, except that
the Board may permit the papers to be filed with
the Board, in which event the Board shall note
thereon the filing date. All documents filed with
the presiding officer or the Board, except exhibits,
shall be duplicate in letter size 8 1/2" by 11".
(3) "Party" means the Board, the licensee, or an
intervenor who qualifies under G.S. 150B-38(f).
"Party" does not include a complainant unless the
complainant is allowed to intervene under G.S.
150B-38(fl.
(41 "Service or serve" means personal delivery or.
unless otherwise provided by law or rule, delivery
by first class United States Postal Service mail or
a licensed overnight express mail service,
addressed to the person to be served at his or her
last known address. A Certificate of Service by
the person making the service shall be appended to
every document requiring service under these
Rules. Service by mail or licensed overnight
express mail is complete upon addressing,
enveloping, and placing the item to be served, in
an official depository of the United States Postal
Service or delivering the item to an agent of an
overnight express mail service.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1202 COMPLAINTS
(a) Anyone who believes that a licensee is or has been
engaged in any conduct set out In G.S. 143-15 1.56(a1 may
file a written complaint against that licensee. The Board
may, upon its own motion, initiate an investigation of a
licensee.
(bl An information memo containing instructions for
filing the complaint shall be mailed to anyone requesting
complaint information from the Board. A copy of the
Board's statutes and rules shall also be sent.
(cl The complaint shall specifically identify the licensee
and describe the conduct complained about.
(dl Supporting information shall be included to justify the
complaint. Supporting information shall refer to specific
violations of the Board's rules or of the General Statutes. If
the complaint involves items included in the Standards of
Practice that the licensee did not observe, a list of those items
must be submitted with the complaint. Such information may
be provided by the complainant, an architect, professional
engineer, licensed contractor, another licensed inspector, or
other person with knowledge of the Standards of Practice. A
copy of the contract agreement, the inspection report, and
any reports made by other consultants shall be. included with
the complaint.
(ej The complaint shall be m writing, signed by. the
complainant, and dated. The complaint shall include the
complainant's mailing address and a daytime phone number
at which the complainant may be reached. The street address
of the structure must be included.
£f) The Board shall not consider services that are under the
jurisdiction of other regulatory agencies or licensing boards.
such as. termite inspections, appraisals, services rendered by
licensed architects, engineers, or general contractors, unless
the persons rendering those services hold themselves out to
be home inspectors.
(gl The Board has no jurisdiction over persons who make
specialized inspections as part of their repair or maintenance
businesses, such as. roofing repair contractors, chimney
sweeps, duct cleaning, and interior environment specialists.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1203 BOARD STAFF
The Engineering Division of the Department of Insurance
shall not conduct any building, electrical, mechanical, or
plumbing inspection of any structure that is the subject of a
complaint against an inspector. The Engineering Division
shall verify whether the allegations listed in complaints are
violations of the Standards of Practice. Code of Ethics, or of
the General Statutes.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1204 INVESTIGATION
(a) On receipt of a complaint conforming to this Section,
the Engineering Division shall make an investigation of the
charges and issue a report. The report shall address each
item alleged to be a violation of these Rules or of the General
Statutes.
(bl A copy of the complaint shall be mailed to the home
inspector. The inspector shall submit a written response to
the Engineering Division within two weeks after receipt of
the copy of the complaint.
(cl A copy of the report shall be mailed to the complainant
and to the inspector. The report shall be presented to the
Board at its next regularly scheduled meeting .
(dl The report shall state that the complaint either has or
lacks sufficient evidence to support the allegations in the
complaint.
(el If the report states that the allegations lack sufficient
evidence, the Engineering Division shall:
(11 Advise the complainant in writing that the
evidence was insufficient to support the allegations
11:19 NORTH CAROLINA REGISTER January 2, 1997 1424
PROPOSED RULES
in the complaint.
£2} A^ise the complainant that the complaint may be
reviewed by a committee of Board members
appointed by. the Chairman to determine whether
the finding of the Engineering Division is correct.
(3) Advise the complainant that the complainant must
make a written request for the review and must
state in the request the reasons why the
complainant is of the opinion the Engineering
Division's determination is incorrect.
(4) If the complainant makes a written request for
review by a committee of Board members, the
chairman shall appoint the committee. The
committee shall review the report and the
complainant's documentation. If the committee
finds that the allegations are unsupported by the
evidence, the Engineering Division shall advise the
complainant in writing that the committee has
concurred with the Engineering Division's
conclusion that the complaint lacks sufficient
evidence to support the allegations in the
complaint.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1205 DISCIPLINARY HEARING
If there are findings in the report or by the review
committee that there is sufficient evidence to support the
allegations in the complaint, the Board shall fix a time and
place for a disciplinary hearing and give notice to the
licensee. The disciplinary hearing shall be held in
accordance with G.S. 150B. Article 3A and this Section.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1206 PRESIDING OFFICER
In all contested case hearings before the Board, the
Chairman of the Board shall serve as presiding officer. In
the absence of the Chairman, the Vice-Chairman shall serve
as presiding officer, or a presiding officer shall be elected by
the Board.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
.1207 PREHEARING CONFERENCE
Upon the request of any party or upon the presiding
officer's own motion, the presiding officer may hold a
prehearing conference before a contested case hearing. A
prehearing conference on the simplification of issues,
amendments, stipulations, or other matters may be entered on
the record or may be made the subject of an order by the
presiding officer. Venue for purposes of a prehearing
conference shall be determined in accordance with G.S.
150B-38(e).
.1208 CONSENT AGREEMENT
(a) The Board's staff and the home inspector may attempt
to resolve the complaint by means of a consent agreement-
Such consent agreement may impose upon the licensee a
penalty, or penalties, including the following: requiring the
licensee to take training or educational courses, probation,
letter of reprimand, suspension of license, or revocation of
license.
(b) The proposed consent agreement shall then be
presented to the Board at the next meeting. The Board can
either accept the consent agreement as written, modify the
consent agreement and send it back to the licensee for
agreement, or reject the consent agreement.
Authority G.S. 143-151. 49(a)(13); 150B-38(h).
. 1209 FINAL BOARD ORDER
(a) After the close of a contested case hearing, the Board
shall meet and determine if the licensee engaged in. the
conduct alleged and the appropriate penalty, including
requiring the licensee to take training or education courses,
probation, letter of reprimand, or. license suspension or.
revocation.
(b) If a final Board order is to suspend, revoke, place on
probation, or. refuse to issue a. certificate, the order shall set
forth any conditions that must be met in order to remove the
suspension or probation, to reissue the license, or to issue the
license.
(c) Contested case hearings shall be recorded either by a
recording system or a professional court reporter using
stenomask or stenotype.
(d) Transcript costs incurred by the Board shall be paid by
the party or parties requesting a transcript. Any other costs
incurred by the Board when using a professional court
reporter shall be paid by the requesting party or parties.
£e) A 24-hour cancellation notice is required in all cases.
The party or parties responsible for the cancellation shall be
responsible for any cancellation fees charged by a
professional court reporter.
(fj Transcripts of proceedings during which oral evidence
is presented shall be made only upon request of a party.
Transcript costs shall include the cost of an ori ginal for the
Board. An attorney requesting a transcript on behalf of a
party is a guarantor of payment of the cost. Cost shall be
determined under supervision of the presiding officer who.
in cases deemed to be appropriate by him, may require an
advance security deposit to cover the prospective cost. The
security deposit shall be applied to the actual cost and any
excess shall be returned to the party that submitted it
(gl Copies of tapes are available upon written request at
cost of reproduction and postage.
(h) Copies of Board hearings tapes or non-Board certified
transcripts therefrom are not part of the official record.
Authority G.S. 143-151. 49(a)(13); 150B-38(h). Authority G.S. 143-151. 49(a)(13); 150B-38(h).
1425 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
***************
Notice is hereby given in accordance with G.S.
150B-21.2 that the Department of Insurance intends to
amend rules cited as 11 NCAC 10 . 0602 - . 0603; and adopt
rule cited as 11 NCAC 10 .0606. Notice of Rule-making
Proceedings was published in the Register on November 1,
1996.
Proposed Effective Date: July 1, 1998
A Public Hearing will be conducted at 10:30 a.m. on
January 21, 1997 at N. C. Department of Insurance, 430 N.
Salisbury Street, 3rd Floor Hearing Room, Dobbs Building,
Raleigh, NC 27611.
Reason for Proposed Action:
11 NCAC 10 .0602 - .0603 - To amend existing rules to
comport with new law.
11 NCAC 10 .0606 - To adapt rule to comport with new law.
Comment Procedures: Written comments may be sent to
Charles Swindell, Department of Insurance, PO Box 26387,
Raleigh, NC 27611.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 10 - PROPERTY AND CASUALTY
DIVISION
SECTION .0600 - CONSENT TO RATE
.0602 CONSENT TO RATE PROCEDURES: RATE
BUREAU COVERAGES
(a) An initial (first time) application to effect consent to
rate on a specific risk of coverage subject to Article 36 of
General Statute Chapter 58, in excess of the rate promulgated
by the North Carolina Rate Bureau, shall include , but not be
limited tu, contain the following:
(1) a description of the insurance proposed, including
primary and excess limits, the amount of coverage,
the property insured, the deductible deductible.
and any other factor used for rating, where
applicable;
(2) the rate and premium that would be charged
without application of consent to rate;
(3) the proposed rate and premium;
(4) the percent increase. The rate to be charged wtH
shall be presumed reasonable if it does not exceed
250 percent of the rate that would be charged
without application of consent to rate. Any
proposed rate in excess of 250 percent must be
explained fully and is subject to review and
approval of the Commissioner couunissiouer
pursuant to G.S. 58-36-30(b). (This is not
required for and does not apply to nonfleet private
passenger motor vehicle physical damage
insurance);
(5) a statement that the rate charged does not exceed
the rate that would be applicable if the applicant
had been charged 550 percent of the rate with no
Safe Driver Incentive Plan points. Any proposed
rate in excess of 550 percent must be explained
fully, submitted individually, and is subject to
review and approval of the Commissioner
commissioner pursuant to G.S. 58-36-30(b). (This
is required for nonfleet private passenger motor
vehicle physical damage insurance only);
(6) the names and addresses of the insurer, the writing
agent, and the insured;
(7) the effective date of the proposed rate;
(8) the policy period;
(9) the policy number; and
(f6) the icasun fui the surcharge may be required; and
(10) (-r-r) a letter signed by the insured acknowledging
and consenting to the proposed rate, late (nut
required to be submitted tu the cuiiiniissiunei fui
nonfleet private passeugei mutui vehicle physical
damage insurance). If coverage for the specific
risk written on consent to rate is available through
a residual market (FAIR Plan, Beach Plan, North
Carolina Reinsurance Facility, North Carolina
Workers Compensation Insurance Plan), a
statement signed by the insured acknowledging
that fact must also be submitted? executed.
All such applicatiuus must be furwaided diiectly tu the
conuujssiunei fur approval.
(b) Such applications involving nun-standard autuuiubile
physical damage insurance may be lecuided uu a fuiui
appiuv ed by die cumiuissiunei and must be forwarded to the
commissioner before the expiration of the 90-day period in
Paiagiaph (c) uf this Rule . A letter signed by each insured
acknowledging and consenting to the proposed rate shall be
retained in the insurer's office and be made available to the
commissioner Commissioner upon request. A separate letter
with die iusui ed ' s signature must be obtained for each pulicy
val of consent to rate
period.
fc)
—
All applicatiuus fui approval ot n
receiv ed moi e than 9 days aftei the effective date uf the
piupused rates will be disappruved and cunstiued as effective
at the lates that wuuld be chaiged without application of
cunseut tu idte uu the effectiv e date .
Authority G.S. 58-2-40(1); 58-36-30(b).
.0603 CONSENT TO RATE PROCEDURES:
COMMERCIAL COVERAGES
(a) An initial (first time) application to effect consent to
11:19 NORTH CAROLINA REGISTER January 2, 1997 1426
PROPOSED RULES
rate on a specific risk of coverage subject to Article 40 of
General Statute Chapter 58, in excess of the rate promulgated
by a licensed rating organization or filed by a company on its
own behalf shall im-luilc, but uut be limited to, contain the
following:
(1) a description of the insurance proposed, including
primary and excess limits, the amount of coverage,
the property insured, the deductible deductible.
and any other factor used for rating, where
applicable;
(2) the rate and premium that would be charged
without application of consent to rate;
(3) the proposed rate and premium;
(4) the percent increase. The rate to be charged will
be presumed reasonable if it does not exceed 250
percent of the rate that would be charged without
application of consent to rate. Any proposed rate
in excess of 250 percent must be explained fully
and is subject to review and approval by the
commissioner Commissioner pursuant to G.S. 58-
40-30(c);
(5) the names and addresses of the insurer, the writing
agent, and the insured;
(6) the effective date of the proposed rate;
(7) the policy period;
(8) the policy number; and
(9) the icasoii fui the suichaige, and
(9) ftQ) a letter signed by the insured acknowledging
and consenting to the proposed rate, (not l equiied
to—be
—
submitted—to—the—crrrnmrssrorrci—for
automobile—physical—damage
—
iusuianc e). If
coverage for the specific risk written on consent to
rate is available through a residual market (FAIR
Plan, Beach Plan, North Carolina Reinsurance
Facility, North Carolina Workers Compensation
Insurance Plan), a statement signed by the insured
acknowledging that fact must also be submitted?
executed.
All such applications must be fuiwaided diiectly tu the
commissione r.
(b) Such applications invulviug non-standard automobile
physical damage iiisuiance may be l ecoided uii a form
appioi ed by the I
.0606 CONSENT TO RATE PROCEDURES
(a) If a policy for which the insured had consented to pay
a higher premium rate is reinstated after a lapse, the insurer
does not have to obtain a signed statement from the insured
under this Section for the reinstatement.
fb) All records generated under G.S. 58-36-30fb1 or G.S.
58-40-30(c) and under this Section shall be maintained in
accordance with 11 NCAC 19 .0002 and H NCAC 12
.0007.
£c) After a signed application is obtained by an insurer
under this Section for a policy, all subsequent changes m the
policy are endorsements for the purposes of G.S. 58-36-30fb1
or G.S. 58-40-30(c).
(d) If a particular kind of coverage is added to a policy by
endorsement during the term of the policy and the added
coverage is written at a higher rate under G.S. 58-36-30fb')
or G.S. 58-40-30^1 and under this Section, the insurer shall
obtain the signature of the insured under Rules .0602 and
.0603 of this Section no later than the next renewal of the
policy.
£e} If an insured consents to pay a higher premium rate
under G.S. 58-36-300?) or G.S. 58-40-30(^1 and under this
Section and consent to rate coverage is subsequently
terminated, if the insured and insurer enter into another
agreement under G.S. 58-36-30fb1 or G.S. 58-40-30(c) and
under this Section, the insurer does not have to ohtain the
signature of the insured under Rules .0602 and .0603 of this
Section unless three years have elapsed since the termination
of the coverage.
Authority G.S. 58-2-40(1); 58-36-30(b); 58-40-30(c).
TITLE 15A - DEPARTMENT OF ENVIRONMENT,
HEALTH, AND NATURAL RESOURCES
Notice is hereby given in accordance with G.S.
150B-21.2 that the North Carolina Wildlife Commission
intends to amend rules cited as 15A NCAC 10F . 031 7, . 0339.
Notice of Rule-making Proceedings was published in the
Register on October 1 , 1996.
• commissione r anu must Be toiwaiueu tlie
coiniiiissiuuei be foi e the expiration of the 90-day period
specified m Paragraph (c) of this Rule. A letter signed by
each insured acknowledging and consenting to the proposed
rate shall be retained in the insurer's office and be made
available to the commissioner upon request.
(c) All applications for consent to rate rec e ived more than
9 days after the e ffectiv e date of the pioposed rates will be
and be forwarded to the Proposed Effective Date: July 1, 1998
icjec teu aim construed as e: ffffeccttiivvee at ttihiee rates tmhaatt wwoouuld be
chaiged without application of consent to rate on the effective
date.
Authority G.S. 58-2-40(1); 58-40-30(c).
A Public Hearing will be conducted at 10:00 a.m. on
January 22, 1997 at Archdale Building, Wildlife Conference
Room, 512 N. Salisbury Street, Raleigh, NC 27604.
Reason for Proposed Action: To regulate boat speed in
congested area.
Comment Procedures: Interested persons may present their
\iews either orally or in writing at the hearing. In addition,
the record of hearing will be open for receipt of written
commentsfrom January 2, 1997 - February 3, 1997. Such
written comments must be delivered or mailed to NC Wildlife
1427 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
Resources Commission, 512 N. Salisbury Street, Raleigh, NC
27604-1188.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 10 - WILDLIFE RESOURCES AND
WATER SAFETY
SUBCHAPTER 10F - MOTORBOATS AND WATER
SAFETY
SECTION .0300 - LOCAL WATER SAFETY
REGULATIONS
.0317 STANLY COUNTY
(a) Regulated Areas. This Rule applies to the following
waters and portions of waters:
(1) that portion of Narrows Reservoir (Badin Lake)
which lies within the boundaries of Stanly Cuunty,
County:
(2) that portion of Lake Tillery which lies within the
boundaries of Stanly Cuuuty. County:
(3) Turner Beach Cove on Lake Tillery as delineated
by appropriate markers.
(b) Speed Limit Near Ramps. No person shall operate a
vessel at greater than no-wake speed within 50 yards of any
public boat launching ramp while on the waters of a regulated
area described in Paragraph (a) of this Rule.
(c) Restricted Swimming Areas. No person operating or
responsible for the operation of a vessel shall permit it to
enter any marked public swimming area established with the
approval of the Executive Director, or his representative, on
the waters of a regulated area described in Paragraph (a) of
this Rule.
(d) Speed Limit in Specific Zones. No person shall
operate a vessel at greater than no-wake speed within 50
yards of the following marked zone located on any regulated
area described in Paragraph (a) of this Rule:
(1) Mountain Creek Cove, Lake Tillery.
(e) Placement and Maintenance of Markers. The Board of
Commissioners of Stanly County is hereby designated a
suitable agency for placement and maintenance of the
markers hereby authorized, subject to the approval of the
United States Coast Guard and the United States Army Corps
of Engineers. With regard to marking the regulated areas
described in Paragraph (a) of this Rule, supplementary
standards as set forth in Rule .0301(g)(1) to (8) of this
Section shall apply.
Authority G.S. 75A-3; 75A-15.
.0339 MCDOWELL COUNTY
(a) Regulated Areas. This Rule applies to the following
waters located on Lake James in McDowell County:
(1) that area adjacent to the shoreline of the McDowell
Wildlife Club property;
(2) that area adjacent to the shoreline of the Marion
Moose Club property;
(3) that area known as Morgan Cove;
(4) that area within 50 yards of the shoreline at the
New Manna Baptist Youth Camp;
(5) that area within 50 yards of the shoreline at
Burnett's Landing;
(6) the cove area adjacent to the State Park swimming
area;
(7) the cove area adjacent to the State Park picnic area
and dock;
(8) that area within 50 yards of camping areas in the
Lake James State Park as designated by the
appropriate markers;
(9) that area within 50 yards of the boat launching
ramp at the Marion Lake Club;
(10) that area within 50 yards in either direction from
the marina docks in Plantation Point Cove;
(11) that designated area of Goodman's Landing Cove
within 50 yards of the swimming area and boat
docks of Goodman's Canipgiuuud. Campground:
(12) that area beginning at the rock shoals located at
Deerfield Campground downstream for a distance
of approximately 200 yards as delineated by
appropriate markers.
(b) Speed Limit. No person shall operate any motorboat
or vessel at greater than no-wake speed within any of the
regulated areas described in Paragraph (a) of this Rule.
(c) Restricted Swimming Areas. No person operating or
responsible for the operation of any vessel, surfboard or
waterskis shall permit the same to enter any marked
swimming area located on the regulated area.
(d) Placement and Maintenance of Markers. The Board of
Commissioners of McDowell County is designated a suitable
agency for placement and maintenance of the markers
implementing this Rule.
Authority G.S. 75A-3; 75A-15.
TITLE 21 - OCCUPATIONAL LICENSING BOARDS
Notice is hereby given in accordance with G.S.
150B-21.2 that the North Carolina Board of Nursing
intends to amend rule cited as 21 NCAC 36 . 0320. Notice of
Rule-making Proceedings was published in the Register on
October 15, 1996.
Proposed Effective Date: August 1, 1998
A Public Hearing will be conducted at 1:30 p.m. on January
23, 1997 at the Embassy Suites Hotel, 4700 Creedmoor
Road, Raleigh, NC.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1428
PROPOSED RULES
Reason for Proposed Action: This action is based on the
need to correct an omission which allowed for immediate
dismissal of nursing students who present behavior which
conflicts with safety essential to nursing practice.
Comment Procedures: Any person wishing to present oral
testimony relevant to proposed rule may register at the door
before the hearing begins and present hearing officer with a
written copy oftestimony. Written comments concerning this
amendment must be submitted by February 3, 1997 to: North
Carolina Board of Nursing, PO Box 2129, Raleigh, NC
27602: Attn: Jean H. Stanley, APA Coordinator.
Fiscal Note: This Rule does not affect the expenditures or
revenues ofstate or local governmentfunds. This Rule does
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 36 - BOARD OF NURSING
SECTION .0300 - APPROVAL OF NURSING
PROGRAMS
.0320 STUDENTS
(a) Students in nursing programs shall meet requirements
established by the controlling institution. Additional
requirements may be stipulated for nursing students because
of the nature and legal responsibilities of nursing education
and nursing practice.
(b) Admission requirements and practices shall be clearly
stated and published by the controlling institution and shall
include assessment of:
(1) record of high school graduation, high-school
equivalent, or earned credits from an approved
post-secondary institution; and
(2) achievement potential through the use of previous
academic records and pre-entrance examination
cut-off scores that are consistent with curriculum
demands and scholastic expectations; and
(3) physical and emotional health that would provide
evidence that is indicative of the applicant's ability
to provide safe nursing care to the public.
Initial admission may be based on Subparagraphs (b)(1) and
(2) of this Rule and any other institutional requirements;
however, final admission shall be contingent upon
Subparagraph (b)(3) of this Rule.
(c) The number of students enrolled in nursing courses
shall not exceed the maximum number approved by the Board
as defined in 21 NCAC 36.0302 and 21 NCAC 36.0321.
(d) Published puliiies and practices shall exist that piuvide
for
—
id e ntification and dismissal of s tudents whu pieseiit
physical, e inutiunal, or behavioral piubleins which conrtfahcrtt
with safe ty e ss ent ials tu musing piaitii e and do not lespund
to appropriate treatment or counse ling with a icasonable
pe iiud of t ime.
(d) Published policies and practices shall exist that provide
for identification and dismissal of students who:
tl) present physical or emotional problems which
conflict with safety essential to nursing practice
and do not respond to appropriate treatment or
counseling within a reasonable period of time.
t2) demonstrate behavior which conflicts with safety
essential to nursing practice.
(e) Criteria for progression through a program shall
clearly define the level of performance required to pass each
course in the curriculum, the level at which failure of the
course is determined, and the level of performance in
prerequisite courses required for progression to subsequent
courses or levels. These criteria shall apply to both
theoretical and clinical components of nursing courses.
(f) Program objectives shall be consistent with
components of basic nursing practice as defmed for the
licensure level.
(g) Implementation of the nursing program shall result in
no less than an annual 75 percent pass rate on first writing of
the licensure examination for the calendar year ending
December 31.
(h) Policies for transfer of credits or for admission to
advanced placement shall be stated and must provide that:
(1) general admission, progression, and graduation
requirements of the nursing program shall apply to
the applicant; and
(2) the nursing program shall determine the total
number of nursing courses or credits allowed for
advancement placement.
Authority G.S. 90-171. 23(b)(8); 90-171.38.
TITLE 25 - OFFICE OF STATE PERSONNEL
Notice is hereby given in accordance with G.S.
150B-21.2 that the State Personnel Commission intends
to amend rules cited as 25 NCAC ID .2501, .2503 - .2505,
.2507 -.2509, .2511, .2513 - .2514; and adopt rule cited as
25 NCAC ID .2516. Notice ofRule-making Proceedings was
published in the Register on October 1 , 1996.
Proposed Effective Date: August 1, 1998
A Public Hearing will be conducted at 2:00 p.m. on
February 5, 1997 at Office of State Personnel, 116 West
Jones St. , 3rd Floor Conference Room 3106 T-2, Raleigh, NC
27603.
Reason for Proposed Action: These actions are proposed
in order to provide clarification to state agencies in
administering the legislative salary increases enacted by the
General Assembly in HB 53 in the 1995 Session.
Comment Procedures: Interested persons may present
statements either orally or in writing at the Public Hearing
1429 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
or in writing prior to the hearing by mail addressed to:
Peggy Oliver, Office of State Personnel, 116 West Jones St.
,
Raleigh, NC 27603.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 1 - OFFICE OF STATE PERSONNEL
SUBCHAPTER ID - COMPENSATION
SECTION .2500 - COMPREHENSIVE
COMPENSATION SYSTEM
work cycle after:
(1) receiving a permanent appointment,
(2) completing a work cycle, and
(3) receiving a summary rating that is at or above level
three.
(d) An employee who is on leave without pay on the date
career growth recognition awards are granted shall receive
the increase on the date of reinstatement if the work cycle has
been completed and a summary rating given. If the work
cycle and summary rating have not been completed, the
employee shall receive the career growth recognition award
at the time when both are completed.
(e) An employee who separates from State service prior to
the effective date career growth increases are effective is not
eligible for the increase.
.2501 CAREER GROWTH RECOGNITION AWARD
Career Growth Recognition Award is an annual salary
increase awarded to an employee whose final overall
summary rating is at or above level three of the rating scale
and who does not have an unresolved final wiitteu warning
disciplinary procedure, that involves persunal ujuduit . This
is the primary method by which an employee progresses
through the salary range. In the event that an employee does
not receive a cost-of-living increase, the salary may fall
below the minimum of the salary range. This factor alone
shall not be justification for any type of salary adjustment.
Authority G.S. 126-7.
.2503 EMPLOYEES ELIGIBLE FOR CAREER
GROWTH RECOGNITION AWARD
(a) An employee having a permanent or time-limited full-time
or part-time (half-time or more) appointment whose
salary is below the maximum of the range and whose overall
summary rating is at or above level three after completing a
work cycle based on a work plan shall receive a career
growth recognition award unless the employee has an
unresolved final wiitteu warning disciplinary procedure, that
invulvet. personal luiiduit. For an employee who otherwise
qualifies for a career growth recognition award, a an
unresolved final wiitteu warning disciplinary procedure is the
only justification for not granting this increase.
(b) An employee who has been denied the career growth
recognition award because of an unresolved final wiitteu
warning disciplinary procedure shall receive the award on a
current basis at the time that final wiitteu—warning
disciplinary procedure is resolved. (See 25 NCAC ID. 2514
of this Section) For puipuse purposes of calculating the
career growth recognition award, only the most recently
awarded increase shall be utilized (i.e., the last increase that
was funded).
(c) An employee having a probationary or trainee
appointment on the date increases are effective is not eligible
for a career growth recognition award. These employees
become eligible when increases are effective for the next
Authority G.S. 126-7.
.2504 EFFECTIVE DATE OF CAREER GROWTH
RECOGNITION AWARD
Career growth recognition awards shall be effective on the
first day of July unless otherwise specified by the General
Assembly or because they are delayed due to leave without
pay or an unresolved final wiitteu warning, disciplinary
procedure.
Authority G.S. 126-7.
.2505 COST-OF-LrvTNG ADJUSTMENT
Cost-of-Living Adjustment is a general salary increase in
response to inflation and labor market factors awarded to an
employee whose final overall summary rating is at or above
level two of the rating scale, and who does not have an
unresolved final written warning, disciplinary procedure.
Authority G.S. 126-7.
.2507 EMPLOYEES ELIGIBLE FOR COST-OF-LIVING
ADJUSTMENT
(a) An employee having a permanent, time-limited.
probationary, or trainee full-time or part-time (half-time or
more) appointment whose overall summary rating is at or
above level two, or a rating based on Paragraph (b) of this
Rule that is not unsatisfactory, except employees who have
an unresolved final wiitteu waruiug disciplinary procedure
involving personal conduct on the date that increases are
given is eligible for a cost-of-living increase. This applies to
all employees regardless of where their salary is in the salary
range, including those above the maximum.
(b) For the purpose of granting the cost-of-living
adjustment to employees who have not completed a full
performance management cycle and received an overall
summary rating, the following shall apply:
(1) Pi iui tu July 1
,
Each each employee's performance
shall be reviewed.
(2) If the review indicates unsatisfactory performance,
11:19 NORTH CAROLINA REGISTER January 2, 1997 1430
PROPOSED RULES
the employee shall not receive the cost-of-living
adjustment until the performance level is above the
unsatisfactory level. The actual results of the
review shall be documented with the employee.
(3) If the review indicates that the performance is
above unsatisfactory, the employee shall be
granted the cost-of-living adjustment.
(4) If the supervisor feels that the employee has not
worked long enough for a determination of
performance level to be made, a review shall be
made each month for the purpose of deteniiining
whether the performance is above unsatisfactory
and the cost-of-living adjustment should be
granted.
(5) If the cost-of-living adjustment has not been
granted during the probationary period, it shall be
granted on a current basis at the time the employee
is given a permanent appointment since the
employees performance must be satisfactory to
move from a probationary to a permanent
appointment.
(c) An employee who has been denied the cost-of-living
adjustment because of an unresolved final wiitteu warning
disciplinary procedure involving peisuual conduct shall
receive the adjustment on a current basis when that final
wiitteu warning disciplinary procedure is resolved. (See 25
NCAC ID .2514 of this Section)
(d) An employee who is on leave without pay on the date
a cost-of-living adjustment is effective shall receive the
increase on the date of reinstatement if the employee's
performance has been determined to be above the
unsatisfactory level, or at such time as the employee's
performance is determined to be above the unsatisfactory
level.
Authority G.S. 126-7.
.2508 EFFECTIVE DATE OF COST-OF-LIVING
ADJUSTMENT
Cost-of-living adjustments shall be effective on the first
day of July unless otherwise specified by the General
Assembly or because they have been delayed due to leave
without pay or an unresolved final wiitteu—warning.
disciplinary procedure.
Authority G.S. 126-7.
.2509 PERFORMANCE BONUS
Performance Bonus is a lump sum award to an employee
whose final overall summary rating is at or above level four
of the rating scale and who does not have an unresolved final
wiitteu warning, disciplinary procedure.
Authority G.S. 126-7.
.251 1 EMPLOYEES ELIGIBLE FOR PERFORMANCE BONUS
(a) An employee having a permanent or time-limited full-time or part-time (naif-time or more) appointment whose overall
summary rating is at or above level four after completing a work cycle based on a work plan shall be eligible to receive a
performance bonus unless the employee has an unresolved final wiitteu waiuing that involves pcisuual luuduit. disciplinary
procedure.
(b) An employee who has been denied a performance bonus because of an unresolved final written warning disciplinary
procedure involving peisuual conduc t shall not be eligible for a performance bonus during the current cycle. The employee
will be eligible for a bonus in the next cycle based on the pei fui malice evaluation overall summary rating.
(c) An employee having a probationary or trainee appointment on the date bonuses are effective is not eligible for a
performance bonus. These employees become eligible when increases are effective for the next work cycle after:
(1) receiving a permanent appointment,
(2) completing a work cycle, and
(3) receiving a summary rating at or above level four.
(d) An employee who is on leave without pay on the date performance bonuses are effective shall receive the bonus effective
on the date of reinstatement if the work cycle has been completed and an overall summary rating given. If the work cycle and
overall summary rating have not been completed, the employee shall receive the bonus at the time when both have been
completed.
(e) An employee whose salary is at the maximum of the salary range is eligible for a performance bonus.
(f) An employee whose salary is above the maximum of the salary range is eligible for a performance bonus only to the
extent that the base salary paid the employee plus the performance bonus allocated according to the employee's performance
rating does not exceed the maximum salary paid on the adopted pay schedule for the applicable pay grade plus the allocated
performance bonus calculated on the maximum salary on the pay schedule. This performance bonus shall be calculated as
follows:
Line Item Calculation
1 Maximum of salary range
2 % bonus due according to performance rating
1431 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
3 Dollar amount of performance bonus [Line 1 x Line 2]
4 Maximum annual salary allowed [Line 1 + Line 3]
5 Salary of employee paid above maximum of range
6 Maximum performance bonus for employee paid above the range [Line 4 - Line 5)
If Line 5 is greater than Line 4, the employee cannot receive a bonus.
(g) An employee who separates from State service prior to the effective date performance bonuses are effective is not eligible
to receive the increase.
Authority G.S. 126-7.
.2513 BASES FOR AWARDING INCREASES
(a) Each agency shall have an operative Performance
Management System which has been approved by the Office
of State Personnel using the North Carolina Performance
Rating Scale. The complete requirements for an operative
performance management system are defined in 25 NCAC 10
- Performance Management System.
(b) Eligibility for increases will be based on the most
recent work cycle completed and overall summary rating
received during the previous 12-month period.
(c) The performance management system of each agency
shall ensure that salary increases are distributed fairly,
consistent with internal equity and with the Performance
Management System. The State Personnel Director shall
rescind any career growth recognition award or performance
bonus that does not meet the intent of the provisions of the
performance management rules and require the originating
agency to reconsider or justify the increase. An increase or
bonus does not meet the intent of the provisions of the
performance management rules in the event that increases or
bonuses are distributed:
(1) in an arbitrary or capricious manner;
(2) in a manner that violates laws prohibiting
discrimination; or
(3) to managers or supervisors whose failure to
comply with the performance management rules
resulted in the loss of an increase or a bonus by
employees under their supervision.
(d) No agency shall set limits so as to preclude an eligible
employee from receiving a career growth recognition award,
cost-of-living adjustment, or performance bonus; or to
initiate written disciplinary procedures for the purpose of
precluding an eligible employee from receiving a cost-of-living
adjustment.
(e) When a work cycle has been completed but an overall
summary rating has not been given, the State Personnel
Director has the authority to order the agency to give an
accurate rating. If the agency fails to give a rating, the
employee shall be given a rating of no less than level 3_i
Once a rating is given for work performed during a cycle for
which the General Assembly has allocated funds for an
increase under the Comprehensive Compensation System, the
employee shall, if allowed by law and the Administrative
(2)
Code, be eligible for the increase retroactive to the date that
other increases were awarded.
(fl Final Disciplinary Procedure Defined: For purposes
of eligibility for salary increases, an employee in final
disciplinary procedure is an employee whose personnel file
includes:
(11 two active disciplinary actions of any type: or
(21 an active suspension without pay or demotion.
Authority G.S. 126-4; 126-7.
.2514 FINAL DISCIPLINARY PROCEDURE
fa) For purpose of this Section only, a final written
wanting disciplinary procedure is deemed to be resolved
resolved: in the event.
(11 when it becomes inactive in accordance with 25
NCAC IJ .0614(g1:
when an authorized manager or supervisor places
a written statement m the personnel file of aa
affected employee indicating that the issue
addressed in the final written disciplinary
procedure, while not inactive for purpose of future
discipline, is sufficiently resolved to warrant the
granting of the appropriate salary increase: or
when the presence of the same final written
disciplinary procedure in the personnel file was
utilized as a basis to deny a salary increase in a
previous performance management cycle.
f+) that the personal conduct issue is resulved and the
warning is i cinuv ed Hum the employee's peisunnel
file , or
i¥) that the personnel file uf the employee contains a
wiitteu statement from an authuiized manager ui
supeivisoi indicating that, afte i levi ew of the
personal conduc t issue , circumstances warrant the
gianting of the career growth award, or
(3} that the final written warning is not resolved in a
manner set forth in Subparagraph (a)(1) or (a)(2)
uf this Rule, and
Q}
m inui e tlian l» mouths nave passed since-the I
date uf the final written warning oi a letter
extending the effect of the warning, and
(B) the agency has not tendered notice to the
11:19 NORTH CAROLINA REGISTER January 2, 1997 1432
PROPOSED RULES
employee uf the extension uf the Final
written warning foi—llie puipuse uf this
Sectiun.—(Tlie nutiue uf e xtension may be
tenileicd at any time piiui tu 18 munths
fuim die date uf the filial wiitten waining-or
pi iui tu the expiiatiuti uf 18 months fium
th e date of the prioi extension.)
(b) In the even t that neithe i Subpaiagiaph (a)(1), (a)(2),
nui (a)(3) uf this Rule aie applicable tu the final writ ten
wanting, then th e final wiitten warning shall be deemed an
ailive final wiitt en warning ui an umesulved final writ ten
warning.
(l) Tliis Ruli and the gianting uf inueases hav e no effect
un the sue uf tin final written fui any uthei puipose.
Authority G.S. 126-7.
.2516 ELIGIBILITY FOR SEPTEMBER 1, 1996
LEGISLATIVE SALARY INCREASES
For purposes of administering the legislative salary
increase provisions, effective September L. 1996. Rules 25
NCAC ID .2501-.2508 and .2513-. 2515 shall apply to the
extent there is not a conflict with the following procedures.
If there is a conflict, the following procedures shall apply:
(1) A career growth recognition award shall be granted
as follows:
(a) Employees whose salaries are at the
maximum shall receive a 2%. one-time
career growth bonus.
(b) Employees whose salaries are less than 2%
from the maximum shall receive a partial
increase added to base pay in an amount that
h takes to get to the maximum. These
employees shall also receive a one-time
career growth bonus in an amount that
would equal 2% of the base pay minus the
amount of the career growth award given.
(c) Employees whose salaries are above the
maximum shall receive a 1%. one-time
career growth bonus based on the maximum
of the salary range m effect on August 31.
1996.
(2) The following employees shall receive the cost-of-living
Increase in accordance with Rule
2507(b1(lH5) of this Section:
(a) Employees with a probationary
appointment.
(b) Employees who have not completed a work
cycle, and
(cj Employees who do not have a performance
rating because they were hired after the last
performance management cycle was
completed.
(3) After receiving a permanent appointment,
employees described hi Sub-item (2Kb) and (2)(c)
of this Rule shall also be eli gible to receive a
(41
career growth recognition award as provided
below. Each agency shall assure that all
employees are reviewed 'evaluated by the same
method.
(a) Each employee shall be given an interim
review at the mid-point of the employee's
Performance Management Cycle. If their
total time of employment is at least
equivalent to the agency's minimum
Performance Management Cycle
requirement, the employee shall be granted
a career growth recognition award at that
point, if their performance is deemed to be
at level 3 or above: or. it shall be granted at
the time the employee completes the total
time of employment requirement: or.
(b) Each employee shall be evaluated and given
a summary rating after completing time in
the new cycle that is at least equivalent to.
the agency ' s minimum Performance
Management Cycle requirement. If the
overall summary rating is at level 3_ or
above, the employee shall be granted a
career growth recognition award. In any
event, all these employees, employed prior
to September 1. 1996. shall be evaluated for
the career growth recognition award by May
31. 1997. and shall receive the career
growth recognition award if their rating is at
level 3 or above and they are not in final
disciplinary procedure.
Employees with trainee appointments are eli gible
for the cost-of-living adjustment if they are not in
final disciplinary procedure. Employees with
trainee appointments may be eligible for career
growth recognition awards under the following
circumstances:
(a) Employees who are scheduled for trainee
adjustments are not eli gible for the career
growth recognition award. They become
eli gible if they are qualified and are rated
for placement into the regular class during
this fiscal year, provided their total time of
employment is at least equivalent to the
agency's minimum Performance
Management Cycle requirement. If this
requirement has not been met, the increase
shall be delayed until h has been met.
(b) Employees with trainee appointments who
are not scheduled for trainee salary
adjustments during this Fiscal year shall be
eli gible for the career growth award the
same as employees who are in re gular
classes.
(c) In any event, all employees shall be
evaluated for the career growth recognition
1433 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
award by May 31. 1997. unless they are in
a trainee class that extends beyond this date.
Authority G.S. 126-4; S.L. 1995, c. 507, s. 7.14.
***************
Notice is hereby given in accordance with G.S.
150B-21.2 that the State Personnel Commission intends
to amend rules cited as 25 NCAC IE .0705, .0707, .0709.
Notice of Rule-making Proceedings was published in the
Register on October 15, 1996.
Proposed Effective Date: August 1, 1998
A Public Hearing will be conducted at 2:00 p.m. on
February 5, 1997 at Office of State Personnel, 116 West
Jones St., 3rd Floor Conference Room 3106 T-2, Raleigh, NC
27603.
Reason for Proposed Action: The purpose of the Workers'
Compensation rules is to ensure that employees experiencing
work related injuries and illnesses are provided compensation
in accordance with the Workers ' Compensation Act and to
provide consistent application of those rules and regulations.
Further, the purpose is to provide swift and certain remedy
to the injured employee as well as to ensure a limited and
determinate liability to the State.
Comment Procedures: Interested persons may present
statements either orally or in writing at the Public Hearing
or in writing prior to the hearing by mail addressed to: Carl
Goodwin, Office of State Personnel, 116 West Jones St.,
Raleigh, NC 27603.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 1 - OFFICE OF STATE PERSONNEL
SUBCHAPTER IE - EMPLOYEE BENEFITS
SECTION .0700 WORKER'S COMPENSATION
LEAVE
.0705 ADMINISTRATION
(a) Each state agency is responsible for accepting
employer liability for the state and paying claims. To assure
the employee of the benefits provided by the Workers'
Compensation Act and to effectively control the cost related
to on-the-job injuries, each agency shall designate a Workers'
Compensation Administrator to be responsible for the
effectiveness of processing and monitoring the workers'
compensation claims.
(1) The agency shall, on those cases that involve
possible litigation issues, contact the Attorney
General's Office who will defend all cases for the
state before the Industrial Commission.
(2) The agency shall submit all reportable claims and
valid medical and compensation payments to the
Industrial Commission for approval. The
Industrial Commission is responsible for insuring
that each employer administers the provisions of
the Workers' Compensation Act.
(b) The Office of State Personnel through its Employee
Safety—and
—
Health Risk Control Services Division is
responsible for providing assistance to agency personnel in
managing their workers' compensation programs and
insuring that all agencies provide consistent application of
coverage and compensation to injured employees. This
office also provides the agencies with the State Government
Workers' Compensation Program Manual which is an
operational manual used as a guide in processing workers'
compensation claims.
(1) The Employee Safety and Health Risk Control
Services Division shall measure and evaluate the
effectiveness of the workers' compensation
program at each agency and recommend changes to
achieve optimum results. It shall maintain a
statistical data base summarizing a statewide
analysis of total expenditures and injuries, and
develop training and educational materials for use
in training programs for the agencies.
Authority G.S. 126-4.
.0707 USE OF LEAVE
(a) The Workers' Compensation law provides medical
benefits and disability compensation including a weekly
compensation benefit equal to 66 2/3 percent of the
employee's average weekly earnings up to a maximum
established by the Industrial Commission each year. When
an employee is injured, he must go on workers'
compensation leave and receive the workers' compensation
weekly benefit after the required waiting period required by
G.S. 97-28. One of the following options may be chosen:
(1) Option 1: Elect to take sick or vacation leave
during the required waiting period and then go on
workers' compensation leave and begin drawing
workers' compensation weekly benefits.
(2) Option 2: Elect to go on workers' compensation
leave with no pay for the required waiting period
and then begin drawing workers' compensation
weekly benefits.
If the injury results in disability of more than a specified
number of days, as indicated in G.S. 97-28, the workers'
compensation weekly benefit shall be allowed from the date
of disability. If this occurs in the case of an employee who
elected to use leave during the waiting period, no adjustment
shall be made in the leave used for these workdays.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1434
PROPOSED RULES
(b) Options 1 and 2 in Paragraph (a) of this Rule, after the
employee has gone on workers' compensation leave, the
weekly benefit may be supplemented by the use of partial
earned sick or vacation leave, earned prior to the injury, in
accordance with a schedule published by the Office of State
Personnel each year. Since the employee must receive the
weekly benefit, this will provide an income approximately
equal to the past practice of using 100 percent of sick or
vacation leave.
(c) Compensatory time may be substituted for sick or
vacation leave if applied within the time frames provided
under the Hours of Work and Overtime Compensati

R6&
NORTH CAROLINA
>LUME 11 • ISSUE 19 • Pages
January 2, 1997
ft
HISISS1
Executive Order,,w
InAddstidfi I E
Administration, Department of
1 Adiniftistfativ§I^rm^,|OfBce of
Community Colleges
Cultural Resources
Environment, Health, and Natural Reso^cejN^ ///
Human Resources
ursing, Board of
efrigeration Examiners, Board of
dH^ I i&l \y 2§
Social Work, Certificatipnl
List of Rules Codified
Rules Review Commissio
Contested Case Decisions
r?
JAN 6 1997
KATHttW*! R. EVERETT
LAW LIS*AJt?
PUBLISHED BY
Tfte Office ofAdministrative Hearings
Rules Division
PO Drawer 27447
Raleigh, NC 27611-7447
Telephone (919) 733-2678
Fax (919) 733-3462
This publication is printed on permanent, acid-free paper in compliance with G.S. 125-11.13
NORTH CAROLINA IN THIS ISSUE
I. EXECUTIVE ORDERS
Executive Orders 1406
n. IN ADDITION 1407
Volume 1 1 , Issue 1 9
Pages 1 406 - 1532
January 2, 1 997
This issue contains documents officially filed
through December 6, 1996.
Office of Adrninistrative Hearings
Rules Division
424 North Blount Street (27601)
PO Drawer 27447
Raleigh, NC 27611-7447
(919) 733-2678
FAX (919) 733-3462
m. RULE-MAKING AGENDA
Environment, Health, and Natural Resources .... 1408 - 1412
Coastal Resources Commission
Environmental Management Commission
Health Services, Commission for
Water Pollution Control System Operators Certification Comm.
IV. RULE-MAKING PROCEEDINGS
Administrative Hearings, Office of
Rules Division 1413
Transportation
Motor Vehicles, Division of 1413
V. PROPOSED RULES
Administration, Department of
State Building Commission 1414 - 1416
Environment, Health, and Natural Resources
Wildlife Commission 1427 - 1428
Insurance
Engineering and Building Codes Division 1416 - 1425
Property and Casualty Division 1426 - 1427
Licensing Board
Nursing, Board of 1428 - 1429
State Personnel
State Personnel Commission 1429 - 1435
VI. TEMPORARY RULES
Cultural Resources
USS NC Battleship Commission 1436
Environment, Health, and Natural Resources
Departmental Rules 1439 - 1442
Water Pollution Control System Operators
Certification Commission . 1442 - 1448
Human Resources
Medical Assistance, Division of 1436 - 1439
VH. APPROVED RULES 1449 - 1512
Community Colleges
Environment, Health, and Natural Resources
Human Resources
Occupational Licensing Boards
Refrigeration Examiners, Board of
Social Work, Certification Board for
Revenue
Julian Mann IU, Director
James R. Scarcella Sr. , Deputy Director
Molly Masich, Director of APA Services
Ruby Creech, Publications Coordinator
Teresa Kilpatrick, Editorial Assistant
Jean Shirley, Editorial Assistant
Linda Richardson, Editorial Assistant
Vm. LIST OF RULES CODIFIED 1513
DC RULES REVIEW COMMISSION 1514 - 1517
X. CONTESTED CASE DECISIONS
Index to ALJ Decisions 1518 - 1529
Text of Selected Decisions
96 EHR 0692 1530 - 1531
XI. CUMULATIVE INDEX 1-38
Digitized by the Internet Archive
in 2011 with funding from
University of North Carolina at Chapel Hill
http://www.archive.org/details/northcarolinareg1119nort
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EXECUTIVE ORDERS
EXECUTIVE ORDER NO. 105
AMENDING EXECUTIVE ORDERS NO. 99, 102 AND 103
CONCERNING EMERGENCY RELIEF FOR DAMAGE
CAUSED BY HURRICANE FRAN
WHEREAS, Executive Order No. 99 was issued to provide emergency relief for damage caused by Hurricane Fran by
waiving certain size and weight restrictions for certain vehicles; and
WHEREAS, Executive Order No. 99 has been amended by Executive Order No. 102 and Executive Order No. 103; and
WHEREAS, in order to comply with federal law, there is a need to amend Executive Order No. 99 again.
NOW, THEREFORE, pursuant to the authority vested in me as Governor by the Constitution and laws of this State, TT IS
ORDERED:
Executive Order No. 99, as amended, is not applicable to the Interstate Highway System within North Carolina. All other
provisions of Executive Order No. 99, as amended, shall remain in effect.
Done in Raleigh, North Carolina, this 2nd day of December, 1996.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1406
IN ADDITION
This Section contains public notices that are required to be published in the Register or have been approved by the
Codifier of Rulesfor publication.
G.S. 150B-21.17 requires the Codifier of Rules to publish certain information determined to be in the public interest.
Pursuant to the specific written request of the Petree Stockton, law firm of Raleigh, North Carolina, the document printed
below is published under this authority, without comment. Publication of public information under this section should not
be construed to have any legal effect upon any pending litigation or rulemaking procedure.
"Pursuant to N.C.G.S. 150B-21. 1(b), I hereby find that the Agency's written statement of its findings of need for the
temporary rules proposed as 10 N.C.A.C. 3R .3030(8)(a),(b), (c) and (d) does not meet the criteria set forth in N.C.G.S.
150B-2 1.1(a), in that the Agency has not shown that adherence to the notice and hearing requirements of the Administrative
Procedure Act would be contrary to the public interest. Therefore, I do not approve of the adoption of proposed 10 N.C.A.C.
3R .3030(8)(a),(b), (c) and (d) as temporary rules. I do approve the remaining temporary rules submitted by the Agency as
10 N.C.A.C. 3R .3001, .3010, .3020. .3030(l)-(7) and (8)(e)-(h), .3032, .3040 and .3050."
s/Beecher R. Gray
12/29/95
Attachment A
1407 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
An agency may choose to publish a rule-making agenda which serves as a notice of rule-making proceedings if the agenda
includes the information required in a notice of rule-making proceedings. The agency must accept comments on the
agenda for at least 60 daysfrom the publication date. Statutory reference: G.S. 150B-21.2.
TITLE 15A - DEPARTMENT OF ENVIRONMENT, HEALTH, AND NATURAL RESOURCES
This agenda will serve as the notice of rule-making proceedingsfor thefollowing rule-making bodiesfrom January 2, 1997
through March 3, 1997:
Environmental Management Commission - to rules codified in 15A NCAC 2;
Coastal Resources Commission - to rules codified in 15A NCAC 7;
Water Pollution Control System Operators Certification Commission - to rules codified in 15A NCAC 8F; and
Commission for Health Services - to rules codified in 15A NCAC ISA and 26.
DEHNR Regulatory Agenda Index - December 6, 1996
AIR OUALITY
APA# SUBJECT
E2128 Annual Emission Reporting
E2129 Open Burning
E2130 Volatile Organic Compound Emissions
E2131 Transportation Conformity
RULE CITATION &
15A NCAC 2Q .0207
15A NCAC 2D . 1902, . 1903
15A NCAC 2D .0518, .0950, .0902, .0909, .0917 - .0924,
.0934, .0948, .0949, .0951 and 2Q .0102
15ANCAC2D .1500
COASTAL MANAGEMENT
AEA# SUBJECT
E2134 Ocean Mining
RULE CITATION #
15A NCAC 7M .1200; 7H .0106; 7H .0208(b)(ll)
ENVIRONMENTAL HEALTH/ONSITE WASTEWATER
APA # SUBJECT
H653
1
Law and Rules for Sewage Treatment
and Disposal Systems Permits
RULE CITATION #
15A NCAC 18A .1937, .1938, .1958, .1961
(To be filed as temporary rules)
HEALTH AND ENVIRONMENTAL STATISTICS
APA # SUBJECT
H6532 Birth Defects Monitoring Program
RULE CITATION #
15A NCAC 26C .0001- .0007
WATER OUALITY
APA #
E2120
SUBJECT
Certification of Operators of Animal
Waste Management Systems
RULE CITATION &
15A NCAC 8F .0101, .0102, .0201, .0202, .0203, .0301,
.0401-.0407, .0501 - .0507 (Filed as temporary rules)
APA #: E2120
SUBJECT: Certification of Operators of Animal Waste Management Systems
RULE CITATION #: 15A NCAC 8F .0101, .0102, .0201, .0202, .0203, .0301, .0401-.0407, .0501 - .0507
STATUTORY AUTHORITY: G.S. 90A-35; 90A-37; 90A-38; 90A-39; 90A-41; 90A-43; 90A-44; 90A-47; 143B-300;
150B-3; 150B-23; 150B-38; 150B-52
DIVISION/SECTION: WATER QUALITY
DIVISION CONTACT: Ron Ferrell
DIVISION CONTACT TEL#: (919)733-0026
DATE INITIATED: 11/6/96
DURATION OF RULE: Temporary 1/1/97
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
11:19 NORTH CAROLINA REGISTER January 2, 1997 1408
RULE-MAKING AGENDA
The purpose of this rulemaking is to establish the certification procedures and requirements for operators of animal
waste management systems as required by NCGS 90A-47. The intent of this certification is to reduce nonpoint source
pollution that may result from the land application of animal waste that is generated by animal operations as defined
at NCGS 143-215. 10B. The certification program is designed to protect the public health and to conserve and protect
the quality of the State's agricultural land for the production of food and other agricultural products, and to require
the examination of animal waste management system operators and certification of their competency to operate or
supervise the operation of those systems.
SCOPE/NATURE/SUMMARY:
The proposed rules set forth the requirements and procedures for the training and certification of persons who perform
the land application of animal waste that is generated by animal operations as required by NCGS 90A-47. This
certification program is administered by the Water Pollution Control System Operators Certification Commission
(Commission). The purpose of these rules is to reduce nonpoint source pollution in order to protect the public health
and to conserve the quality of the state's water resources. These rules are also intended to encourage the development
and improvement of the state's agricultural land for the production of food and other agricultural products.
The proposed rules apply to all animal operations as defined at NCGS 143-215. 10B. The owners of these facilities
are required to designate and maintain a certified Operator in Charge by January 1, 1997 who is responsible for the
application of animal waste to the land. The Operator in Charge of the facility is responsible for ensuring that the
application of animal waste to the land is performed in accordance with the animal waste management plan for the
facility. As stipulated by the enabling legislation, to become certified an individual must attend ten (10) hours of
training approved by the Commission and demonstrate competence in the operation of animal waste management
systems by passing an examination. The Commission may assess a civil penalty of up to $1,000 for failure to comply
with the requirements of these rules.
APA #: E2128
SUBJECT: Annual Emission Reporting
RULE CITATION #: 15A NCAC 2Q .0207
STATUTORY AUTHORITY: G.S. 143-215. 3(a)(1), (la), (lb), (Id); 143-215.65; 143-215. 106A; 143-215.107; 143B-282;
150B-21.6
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent 7/1/98
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To add perchloroethylene to the list of compounds in 15A NCAC 2Q .0207 for annual reporting of emissions is
required.
SCOPE/NATURE/SUMMARY:
Rule 15A NCAC 2Q .0207, Annual Emissions Reporting, requires the owners or operators of Title V facilities to
report each year the actual emissions of listed compounds that occurred during the previous year. One of the listed
compounds is volatile organic compounds (VOC). Until recently, perchloroethylene was included in the emissions
of VOC. However, the definition of VOC has been amended to exclude perchloroethylene. Because it is a hazardous
air pollutant, the emissions of perchloroethylene still needs to be reported annually. Therefore, 15A NCAC 2Q .0207
needs to be amended to add perchloroethylene to the list of compounds that need to be reported annually.
APA #: E2129
SUBJECT: Open Burning
RULE CITATION #: 15A NCAC 2D .1902, .1903
STATUTORY AUTHORITY: G.S. 143-212; 143-213; 143-215. 3(a)(1); 143-215. 107(a)(5)
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent 7/1/98
TYPE OF RULE:
1409 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To change the name of the Asbestos Hazardous Management Branch to Health Hazard Control Branch in the open
burning rules.
SCOPE/NATURE/SUMMARY:
The Asbestos Hazardous Management Branch has changed its name to Health Hazard Control Branch. Rules 15A
NCAC 2D . 1902, Definitions, and . 1903, Permissible Open Burning Without a Permit, need to be amended to make
this name change.
APA #: E2130
SUBJECT: Volatile Organic Compound Emissions
RULE CITATION #: 15A NCAC 2D .0518, .0902, .0909, .0917 - .0924, .0934, .0948, .0949, .0950, .0951 and 2Q .0102
STATUTORY AUTHORITY: G.S. 143-215. 3(a)(1); 143-215. 107(a)(4); 143-215. 107(a)(5); 143-215.108
DIVISION/SECTION: ATR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To replace 15A NCAC 2D .0518, an archaic rule, with a more common sense and reasonable rule.
SCOPE/NATURE/SUMMARY:
Paragraph (d) of Rule 15A NCAC 2D .0518, Miscellaneous Volatile Organic Compound Emissions, is an antiquated
concept. Whether or not emissions of volatile organic compounds (VOC) are restricted under this rule depends on the
composition of the mixture. If a solvent mix contains compounds defined by chemical structure as being
photochemically reactive above a specified percentage, then the emissions of these compounds are restricted. However,
if a solvent contains these same photochemically reactive compounds below the specified percentage, then the emissions
of these compounds are not restricted. Further, the concept that photochemically reactivity of a VOC is solely
determined by its chemical structure is no longer accepted.
Presently primary consideration is being given to replacing this rule with a work-practice type standard. For example,
typical work practices could include storing all waste material containing volatile organic compounds in closed
containers, cleaning up spills immediately, storing wipe rags in closed containers when not in use, not cleaning
absorbent materials, and covering all containers holding materials containing volatile organic compounds when not in
use. Special provisions may be added for degreasing or cleaning operations, such as, flushing parts in the freeboard
area, reducing the pooling of solvent on and in the parts, tilting or rotating parts to drain as much solvent as possible
and allow sufficient time for drying, not fill cleaning machines above the fill line, and not agitate solvent to the point
of causing splashing. The current rule covers only the use of solvent. The replacement probably would cover not only
the use of VOC as solvent, but also as reactants or product constituents.
Other control options may also be considered. Analysis is planned to determine if the elimination of 15A NCAC 2D
.0518(d) makes a difference in ambient ozone concentration. If a new rule is proposed, it would be placed in Section
15A NCAC 2D .0900, Volatile Organic Compounds, and would be statewide in effect.
With the elimination of 15A NCAC 2D .0518, rules 15A NCAC 2D .0948, VOC Emissions from Transfer Operations,
and .0949, Storage of Miscellaneous Volatile Organic Compounds, would need amending to extend them statewide
to replace similar requirements currently in 15A NCAC 2D .0518. Other clarifying revisions may also be made to
these two rules. Rule 15A NCAC 2D .0902, Applicability, would need amending to identify the new rules that would
be effective statewide. Also Rule 15A NCAC 2D .0950, Interim Standards for Certain Source Categories, could be
repealed and pertinent parts of this Rule could be placed in Rule 15A NCAC 2D .0951, Miscellaneous Volatile Organic
Compound Emissions. Further, the coating rules in Section 15A NCAC 2D .0900 could be amended to remove the
grandfather provision, which would no longer be needed with the repeal of 15A NCAC 2D .0518. Several other rules
may need amending to correct cross-references.
In summary the anticipated action includes adopting one new rule, repealing two rules (15A NCAC 2D .0518 and
.0950) and amending 15A NCAC 2D .0902, .0909, .0917 - .0924, .0934, .0948, .0949 and .0951 and 2Q .0102.
APA #: E2131
11:19 NORTH CAROLINA REGISTER January 2, 1997 1410
RULE-MAKING AGENDA
SUBJECT: Transportation Conformity
RULE CITATION #: 15A NCAC 2D .1500
STATUTORY AUTHORITY: G.S. 143-215.3(a)(l); 143-215. 107(a)(10)
DIVISION/SECTION: AIR QUALITY
DIVISION CONTACT: Thomas Allen
DIVISION CONTACT TEL#: (919)733-1489
DATE INITIATED: 11/22/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Concept Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
To revise the transportation conformity rules to change citations of referenced Code of Federal Regulations.
SCOPE/NATURE/SUMMARY:
EPA is in the process of combining the transportation conformity rules contained in 40 CFR Part 51 with those
contained in 40 CFR Part 93. This change will require amending the rules in Section 15A NCAC 2D .1500,
Transportation Conformity, to change the citations of the referenced Code of Federal Regulations from the rules
contained in 40 CFR Part 51 to those in 40 CFR Part 93. Some other minor changes may also have to be made to rules
in this Section in order to incorporate the federal requirements for transportation conformity.
APA #: E2134
SUBJECT: Ocean Mining
RULE CITATION #: 15A NCAC 7M .1200; 7H .0106; 7H .0208(b)(ll)
STATUTORY AUTHORITY: G.S. 113A-102; 113A-107; 113A-107(b); 113A-108; 113A-1 13(b); 113A-124
DIVISION/SECTION: COASTAL MANAGEMENT
DIVISION CONTACT: Kim Crawford
DIVISION CONTACT TEL#: (919)733-2293
DATE INITIATED: 12/2/96
DURATION OF RULE: Permanent
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
The CRC currently has no specific use standards for mining hard minerals in ocean waters. Offshore mining for
phosphates and sand and gravel is a distinct possibility in the future as nearshore and land-based sources become
depleted. There are studies underway by state and federal agencies to determine if there are suitable sources of sand
offshore for beach renourishment. The general use standards for public trust AECs are not adequate to review a
development proposal for offshore mining. In addition, the Mining Act does not cover areas less than an acre. Nor
does the Division of Land Resources permit minin g activities that are non-commercial.
SCOPE/NATURE/SUMMARY:
As written, this rule would provide a review of activities that would not fall under the purview of the Mining Act.
The rule requires mitigation and restoration of affected areas, and protects critical habitat and resources, such as natural
and artificial reefs, coral outcrops and shipwrecks.
The general policy for ocean mining clarifies that the state has an interest in mining activities in both state and federal
waters, since mining activities beyond three miles have the potential to impact coastal resources. The policy further
states that the usefulness, productivity and other values of the state's ocean waters shall be protected, foremost, and
restored if there are impacts from mining activities.
Mining is defined to include areas that are not subject to review under the Mining Act. The proposed rule also
specifies that dredging activities for the purposes of mining must meet the standards in the rule.
APA #: H6531
SUBJECT: Law and Rules for Sewage Treatment and Disposal Systems
RULE CITATION #: 15A NCAC 18A.1937, .1938, .1958, .1961
STATUTORY AUTHORITY: G.S. 130A-335(e),(f)
DIVISION/SECTION: ENVIRONMENTAL HEALTH/ONSITE WASTEWATER INSPECTIONS
DIVISION CONTACT: William Jeter
DIVISION CONTACT TEL#: (919)715-3274
1411 NORTH CAROLINA REGISTER January 2, 1997 11:19
RULE-MAKING AGENDA
DATE INITIATED: 10/31/96
DURATION OF RULE: Temporary 11/15/96
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
The proposed Temporary Rules are necessary because of amendments to G.S. 130-333 et seq., Wastewater Systems,
enacted by the Legislature during the Short Sessions of 1996.
The principle amendments are 1) the addition of an Improvement Permit that is valid for five (5) years, 2) definitions
of a plat and a site plan, 3) the redefinition of the period of validity for an authorization for wastewater system
construction to be up to five (5) years, and 4) the addition of a subsection to allow for the withholding of funds to local
health departments under certain conditions.
SCOPE/NATURE/SUMMARY:
Those portions of the rules for sewage treatment and disposal systems, 15A NCAC 18A 1900 et seq., that govern the
permits required for the installation, operation, and repair of systems that discharge to the land's subsurface, 18A
. 1937, are proposed to be changed in order that they may accurately reflect the amendments, enacted by the Legislature
during the 1996 Short Sessions. These proposed temporary rules were reviewed by representatives of the field
personnel, supervisors, and directors of local health departments.
APA #: H6532
SUBJECT: Birth Defects Monitoring Program
RULE CITATION #: 15A NCAC 26C .0001- .0007
STATUTORY AUTHORITY: G.S.
DIVISION/SECTION: HEALTH AND ENVIRONMENTAL STATISTICS
DIVISION CONTACT: Jan Ellington
DIVISION CONTACT TEL#: (919)715-4402
DATE INITIATED: 10/31/96
DURATION OF RULE: Permanent 8/1/98
TYPE OF RULE:
STAGE OF DEVELOPMENT: Draft Rule Stage
GOV LEVELS AFFECTED: None
REASON FOR ACTION:
Senate Bill 818, which was ratified in the 1995 session of the General Assembly, amended Article 5 of Chapter 130A
by adding Part 7, "Birth Defects". This new part establishes the Birth Defects Monitoring Program within the State
Center for Health Statistics, and directs the Commission to adopt rules pertaining to the use of monitoring program
information for scientific research.
SCOPE/NATURE/SUMMARY:
This rule covers the major components of the design and operation of the Birth Defects Monitoring Program. Because
this legislation expands the scope of birth defects data collection activities to include hospital medical records, the scope
of the proposed rule is broadened to cover monitoring program operations related to data access and collection, in
addition to confidentiality issues. Specific areas addressed by this rule are: 1) required skills, training, and expertise
of monitoring program staff; 2) development, composition, and functions of the Birth Defects Advisory Committee;
3) operational procedures, including case definition, data sources, and procedures for accessing and abstracting hospital
medical records; 4) procedures for safeguarding confidentiality of monitoring program information; and 5) specific
guidelines for the release of monitoring program information for scientific research.
11:19 NORTH CAROLINA REGISTER January 2, 1997 1412
RULE-MAKING PROCEEDINGS
A Notice ofRule-making Proceedings is a statement of subject matter of the agency 's proposed rule making. The agency
must publish a notice of the subject matterfor public comment at least 60 days prior to publishing the proposed text of
a rule. Publication of a temporary rule serves as a Notice of Rule-making Proceedings and can befound in the Register
under the section heading of Temporary Rules. A Rule-making Agenda published by an agency serves as Rule-making
Proceedings and can befound in the Register under the section heading of Rule-making Agendas. Statutory reference:
G.S. 150B-21.2.
TITLE 19A - DEPARTMENT OF
TRANSPORTATION
TITLE 26 - OFFICE OF ADMINISTRATIVE
HEARINGS
CHAPTER 3 - DmSION OF MOTOR VEHICLES CHAPTER 2 - RULES DrVTSION
A Totice of Rule-making Proceedings is hereby given by the
1 VNorth Carolina Department of Transportation - Division
ofMotor Vehicles in accordance with G.S. 150B-21.2. The
agency shall subsequently publish in the Register the text of
the rule(s) it proposes to adopt as a result of this notice of
rule-making proceedings and any comments received on this
notice.
Citation to Existing Rules Affected by this Rule-Making:
19A NCAC 031 .0100- . 0800
Authority for the rule-making: G.S. 20-1; 20-39(b); 20-
320 through 20-339
Statement of the Subject Matter: Rules set parametersfor
commercial driver training schools and provide information
about the schools and driver training program.
Reason for Proposed Action: Proposed changes will
correct grammatical errors and clarify information regarding
commercial driver training schools.
Comment Procedures: Any interested person may submit
written comments on the proposed rules by mailing the
comments to Emily Lee, Department of Transportation , PO
Box 25201, Raleigh, NC 27611, within 30 days after the
proposed rules are published.
\ Totice of Rule-making Proceedings is hereby given by the
1 1 Office of Administrative Hearings in accordance with
G.S. 150B-21.2. The agency shall subsequently publish in
the Register the text of the rule it proposes to adopt as a
result of this notice of rule-making proceedings and any
comments received on this notice.
Citation to Existing Rules Affected by this Rule-Making:
26 NCAC 2C
Authority for the rule-making: G.S. 150B-21.17, 150B-
21.19
Statement of the Subject Matter: Rules establish the
requirements for submitting rules to be published in the
Register and rules codified in the Code.
Reason for Proposed Action: Pursuant to Ratified House
Bill 53, Sec. 8.5, of the 1996 Second Extra Session, the
General Assembly appropriated funds for a comprehensive
rules management system. This system will automate many
functions in the OAH Rules Division and provide electronic
access to thesefunctions by the General Assembly, the Office
of Administrative Hearings, and the Rules Review
Commission. The new rules management system will require
changes to existing publication rules and may require the
adoption of additional rules in 26 NCAC 2C. With the
implementation of the management system, it may be
necessaryfor the new rules and the changes to existing rules
be adopted as temporary rules.
Comment Procedures: Written comments should be mailed
to: Anna Baird, Rule-making Coordinator, PO Drawer
27447, Raleigh, NC 27611-7447, or may be hand delivered
to 424 N. Blount Street, Raleigh, NC.
1413 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
This Section contains the text ofproposed rules. At least 60 days prior to the publication of text, the agency published
a Notice ofRule-making Proceedings. The agency must accept comments on the proposed rulefor at least 30 daysfrom
the publication date, or until the public hearing, or a later date if specified in the notice by the agency. The required
comment period is 60 daysfor a rule that has a substantial economic impact ofat leastfive million dollars ($5,000,000).
Statutory reference: G.S. 150B-21.2.
TITLE 1 - DEPARTMENT OF ADMINISTRATION
Notice is hereby given in accordance with G.S.
150B-21.2 that the State Building Commission intends
to adopt rules cited as 1 NCAC 30G .0101 - .0105. Notice
ofRule-making Proceedings was published in the Register on
May 15, 1996.
Proposed Effective Date: August 1, 1998
Instructions on How to Demand a Public Hearing (must be
requested in writing within 15 days of notice): A demandfor
a public hearing must be made in writing, addressed to R.
Glen Peterson, Department of Administration, 116 West
Jones Street, Raleigh, NC 27603-8003. The demand must be
received within 15 days ofpublication of this notice.
Reason for Proposed Action: These Rules are proposed to
establish procedures and criteria by which the State Building
Commission can evaluate requests to use alternative
contracting methods in public construction, as authorized by
the 1995 General Assembly.
Comment Procedures: Any interested person may submit
written comments on the proposed rules to R Glen Peterson,
Department of Administration, 116 West Jones Street,
Raleigh, NC 27603-8003. Comments must be received no
later than 5:00 p.m. on February 3, 1997.
Fiscal Note: Rules 1 NCAC 30G . 0101 - . 0103 do not affect
the expenditures or revenues of state or local government
funds. These Rules do not have a substantial economic
impact of at leastfive million dollars ($5,000,000) in a 12-
month period. Rules 1 NCAC 30G .0104 - .0105 do affect
the expenditures or revenues of state or local government
funds. These Rules do not have a substantial economic
impact of at leastfive million dollars ($5,000,000) in a 12-
month period.
CHAPTER 30 - STATE CONSTRUCTION OFFICE
SUBCHAPTER 30G - STATE BUILDING
COMMISSION PROCEDURES AND CRITERIA FOR
AUTHORIZATION TO USE AN ALTERNATIVE
CONTRACTING METHOD
SECTION .0100 - GENERAL PROVISIONS
.0101 AUTHORITY
The State Building Commission, hereinafter referred to as
SBC, is a statutory body, empowered by law to perform a
multiplicity of duties with regard to the State's capital
facilities development and management program. In the
specific area of State capital improvement project
requirements for building contracts, the SBC is empowered
by G.S. 143-135.26 to adopt procedures which allows a State
agency or institution, a local governmental unit, or any other
entity subject to the provisions of G.S. 143-129 to use a
method of contracting not authorized under G.S. 143-128.
The use of any other alternative method shall be approved jn
advance by the SBC for any single project.
Authority G.S. 143-135.26.
.0102 POLICY
To assure that the public trust is carefully exercised, the
North Carolina General Assembly has enacted a number of
special procedures for the letting and administration of public
construction contracts. They also help to assure that public
owners receive good value in their expenditure of the public
funds and that they do not pay excessive prices for
construction. Therefore, it is the policy of the SBC that the
public's interest is typically best served by the letting of
public construction contracts pursuant io these special
statutory procedures, particularly the provisions of G.S. 143-
128. Nevertheless, the SBC recognizes that extraordinary
circumstances do arise which justify an exemption from the
methods of contracting authorized under G.S. 143-128. The
categories of exemptions and other criteria set forth herein
are designed to provide a fair and uniform means by which
the SBC can determine that the requisite justifications to
obtain an exemption have been adequately demonstrated.
Authority G.S. 143-135.26.
.0103 DEFINITIONS
For the purposes of these Procedures and Criteria, the
following definitions shall apply:
(1) "Alternative contracting method" includes by way
of example, but not limited to:
£a) the sin gle-prime contracting system, not
otherwise authorized under G.S. 143-128.
(b) the design-build delivery system, or
(cl the construction management delivery
system.
(21 "Chairman" means the Chairman of the State
Building Commission.
(3) "Construction management delivery system" means
11:19 NORTH CAROLINA REGISTER January 2, 1997 1414
PROPOSED RULES
the alternative contracting method where the public
owner contracts for a fee with a single person, but
not the project general contractor, who administers
contracts with separate contractors for the
construction of the project and who is responsible
as agent to the public owner for the coordination
and management of the project, but where the
public owner remains liable to the separate
contractors.
(4) "Design-build delivery system" means that the
public owner contracts for a fee with a single
person for the design, management and
construction of a project.
(5) "Director" means the Director of the State
Construction Office.
(6) "Exemption" means the grant of authorization by
the SBC for the use of a method of contracting not
otherwise authorized under G.S. 143-128.
£7) "Person" means a person, firm or corporation.
(8) "Project" means the building or facility for which
an exemption is requested by the public owner.
and upon which the work will be performed.
(91 "Public owner" means a state agency or institution.
a local government unit, or any other entity subject
to the provisions of G.S. 143-129.
( \0) "SBC" means the State Building Commission.
(11) "Work" means the erection, repair, construction.
renovation or alteration to be performed upon a
building or facility.
Authority G.S. 143-135.26.
.0104 GENERAL PROCEDURES
(a) Application Form - The SBC shall establish a form of
application, along with a copy of the rules for application
approved by the SBC, to be used by public owners requesting
an exemption, which shall upon request be provided to public
owners. A completed application shall contain all of the
information necessary to enable the SBC to determine the
appropriateness and merits of approving an exemption.
(b) Rules for Application ; The SBC shall establish rules
for application to be used by public owners requesting an
exemption, which shall upon request be provided to public
owners.
(c) Review of Application:
f 1) The public owner shall submit the application to
the State Construction Office. Attention: Director-
Department of Administration. New Education
Building. Suite 450. 301 North Wilmington Street.
Raleigh. North Carolina 27601-2827. The
Director shall review the application upon its
receipt. If the Director determines that the
application is not complete, he shall return the
application to the public owner along with a
written notice of the reasons for the return.
Despite the return of an application, a public
owner may request hi writing to the Director that
the SBC consider the application as. originally
submitted, and the notice of return to die public
owner shall so state this option. An application
shall be considered abandoned if ii is returned
pursuant to this Section, and no further action is
taken by the public owner to satisfy the reasons for
its return.
(2) The SBC shall generally meet once per month to
review applications and to conduct its other
business. Completed applications shall be
considered within 60 days of receipt by the
Director of the completed application. Once
scheduled for consideration by the SBC, the public
owner shall be given notice of the date, time and
location of the SBC meeting at which the
application shall be considered.
£3} The SBC shall only accept written applications.
After due consideration of these applications, the
SBC shall take one of the following actions:
(A) Delay consideration of the application:
£B) Deny the application: or
(C) Approve the application.
Within five days of the SBC's action upon the
application, notice of the same shall be sent to the
public owner, and to the Director. Upon a delay
of consideration pursuant to Paragraph (a) of this
Rule, the SBC shall immediately request from the
public owner or other person further information
required in order to make a determination, or
provide the public owner with notice of other good
cause existing for the delay.
(d) Approval of an Application - Approval of an
application authorizes the public owner to utilize only the
alternative contracting method as proposed by the public
owner and no other method of contracting. Approval of an
application shall be effective for a period to be determined by
the SBC but not exceeding 12 months, unless that effective
time period is extended by the SBC upon good cause shown
by the public owner. The extension of an effective time
period shall be for no more than 12 months and shall run
from the last day of the prior effective time period. The
effective time period shall run from the date the SBC
approves the application.
(el Voting ; The authorization for an alternative
contracting method shall be approved by two-thirds of the
members of the SBC present and voting . A member of the
SBC is not qualified to vote upon any matter or influence any
other member's vote upon any matter in which he has a
conflict of interest. A conflict of interest, as related to
members of the SBC, is defined in G.S. 143-135.28.
(fl Public Records - The Director shall maintain a list of
applications which states the name of the public owner, the
name of the project, the project amount, a brief description
of the category for which the exemption is sought, and a
record of the SBC's action. Applications, and a record of the
1415 NORTH CAROLINA REGISTER January 2, 1997 11:19
PROPOSED RULES
SBC's action upon those applications, shall be available for
public inspection.
Authority G.S. 143-135.26.
.0105 CRITERIA FOR CONSIDERATION
(a) General Considerations - Applications shall be subject
to the following general considerations which the SBC shall
utilize in reviewing all applications:
(1) Whether the public owner has adequately justified
that the requested exemption is applicable to the
project.
(21 Whether under the circumstances presented the
project can be reasonably completed under the
methods authorized under G.S. 143-128. and if
not, whether the public owner has adequately
demonstrated that the proposed alternative
contracting method is necessary.
(3) Whether the exemption sought is appropriate and
in the public's interest.
(41 Whether the public owner has been responsible in
the pre-planning stages of the project.
£b) Criteria for Exemptions z The following criteria
describe circumstances where the SBC recognizes that a
project may not be able to be reasonably completed under the
methods authorized by G.S. 143-128. and where the use of
an alternative contracting system, not otherwise authorized
by G.S. 143-128. may be appropriate and in the public's
interest:
(1) Special Technology or Equipment ; The project
involves the erection or construction of special or
unique technology or equipment whose vendor
requires that its services be purchased in
conjunction with the technology or equipment: or
the vendor guarantees the technology or equipment
only if its services are purchased in conjunction
with the technology or equipment.
(21 Unusual Complexity - The project involves one or
more of the following conditions:
(A) very specialized or complex type of
construction involving unconventional
construction techniques or materials, or
unusual working conditions:
(B) major renovations or an addition to an
existing facility requiring continuous
coordination of occupied programs or
operations necessary for the protection of
public health or safety: or
(CI extensive repairs, renovations or an addition
to a major building or facility listed either
in the North Carolina or Federal Register of
Historic Properties.
(31 Accelerated Schedule ; A fast track schedule is
required due to actual or impending judicial
intervention by means of a State or Federal court
order, or to address actual or impending regulatory
mandates or. citation for noncompliance.
Authority G.S. 143-135.26.
TITLE 11 - DEPARTMENT OF INSURANCE
Notice is hereby given in accordance with G.S.
150B-21.2 that the Department of Insurance intends to
adopt rules cited as 11 NCAC 8 .1001 - .1011, .1101 -
.1116, .1201 - . 1209. Notice of Rule-making Proceedings
was published in the Register on November 1 , 1996.
Proposed Effective Date: July 1, 1998
A Public Hearing will be conducted at 9:00 a. m. on January
17, 1997 at N.C. Department of Insurance, 410 N. Boylan
Avenue, Raleigh, NC 27603.
Reason for Proposed Action: To establish licensing
procedures, standards ofpractice, and a code of ethics for
home inspectors as required by law.
Comment Procedures: Written comments may be sent to
Grover Sawyer, Department of Insurance, PO Box 26387,
Raleigh, NC 27611.
Fiscal Note: These Rules do not affect the expenditures or
revenues ofstate or local governmentfunds. These Rules do
not have a substantial economic impact of at least five
million dollars ($5,000,000) in a 12-month period.
CHAPTER 8 - ENGINEERING AND BUILDING
CODES DIVISION
SECTION .1000 - NC HOME INSPECTOR
LICENSURE BOARD
.1001 OFFICERS
The term of each officer shall be one year. Officers shall
serve until a successor is elected and installed. Officers shall
be eli gible for re-election.
Authority G.S. 143-15 1.48(a).
.1002 MEETINGS
(a) Regular Meetings. The date, time, and location of the
Board meetings shall be listed with the Secretary of State's
office. The chairman shall give written notice of the exact
meeting place to each member no later than two weeks before
the meeting. The chairman may reschedule a regular meeting
by giving written notice to all members no later than two
weeks before when the scheduled meeting would normally be
held.
(bl Special Meetings. Written notice of any special
meetings shall be given to aU members of the Board at least
two weeks before the time of the meeting, setting forth the
11:19 NORTH CAROLINA REGISTER January 2, 1997 1416
PROPOSED RULES
time, date, and place of the meeting and the purpose for
which it shall be held. In the event of an. emergency, the
notice period may be shortened as long as every member is
notified before the meeting.
Authority G.S. 143- 15 1.48(b).
.1003 PERSONS AND PRACTICES NOT
AFFECTED
(a) In addition to persons and practices described in G.S.
143-151.62. persons who perform inspections on a single
component of a house are not required to be licensed as long
as they do not represent themselves as home inspectors. Such
persons include chimney sweeps, radon inspectors, heating
and cooling maintenance technicians, and moisture intrusion
inspectors.
Co) Professional en gineers and architects do not need home
inspector licenses to make on site inspections of residential
buildings for which thev are preparing plans, designs, or
specifications. General contractors do not need home
inspector licenses when they inspect a house as part of
preparing an estimate for construction, remodeling, or
repairs.
Authority G.S. 143-151. 49(a)(13).
.1004 EQUTVALENT EXPERIENCE
(a) The Board shall consider equivalent experience of
applicants who do not meet the experience requirements of
G.S. 143-151.51(5) or G.S. 143-151.61. Any one of the
following descriptions of experience is considered sufficient
to meet the equivalent experience requirements:
(1) A bachelor of science degree from any accredited
engineering , architecture or building technology
school and two years experience working in
building design, construction, or inspection of
building, electrical, mechanical, and plumbing
systems.
(2) A two year Associate of Applied Science degree
from an accredited community college or technical
school in building technology, civil engineering-electrical
engineering, mechanical en gineering, or
architecture: and either four years of design
experience in building, electrical, mechanical, and
plumbing systems, or four years experience as an
employee under the direct supervision of a licensed
general (residential or building) contractor who
supervises electrical, mechanical, and plumbing
subcontractors.
(3) Six years experience as an employee under the
direct supervision of a licensed general contractor
(residential or building) performing building
construction and who supervises electrical,
mechanical, and plumbing subcontractors.
(4) Certification by the North Carolina Code Officials
Qualification Board as a Code Enforcement
Official with Standard Level I (or. higher)
inspection certification in four areas: building-electrical,
mechanical, and plumbing.
(5) Any combination of certification listed ia
Paragraph (a)(4) of this Rule and a. license as. an.
electrical contractor dimited or greater) issued by
the NC Board of Electrical Examiners, or a license
as a heating or cooling contractor (HI. H2. or.
H3). or a plumbing contractor issued by the NC
Board of Examiners of Plumbing. Heating and
Fire Sprinkler Contractors, resulting in either a
certificate or a license in four areas in building,
electrical, mechanical, and plumbing contracting
or inspections.
(6} For the purpose of (LS, 143-151. 51(5)a. the
number of completed home inspections for
compensation before October X* 1996. as a home
inspector may be included.
(b) Applicants may submit other experience in the design,
installation, or inspection of buildings and electrical,
mechanical, and plumbing systems. The Board's Application
Evaluation Committee shall consider such experience on a
case-by-case basis.
(c) Graduation in a home inspection course from a training
institute or correspondence school is not sufficient to meet
the equivalent experience alone. However, such courses
should be listed along with other experience.
Authority G.S. 143-151. 49(a)(13); 143-151.51(5)b.
.1005 RECD?ROCITY
If an applicant is licensed as a home inspector m another
state that has laws and rules that are similar to Article 9F of
G.S. 143 and to the rules of the Board, the Board shall accept
that license as evidence of experience. However, the
applicant shall satisfactorily complete the Board's written
examination and other licensing requirements before the
Board shall issue the applicant a license.
Authority G.S. 143-151. 49